A week ago I wrote: "The bearish harami cross confirmed candle pattern was continued on Monday with another large black candle down. The low of the week went down to 2050 finding support on the median line of the down moving pitchfork and the S1 pivot support of the month. I think the next down target is the low side of the volatility band and the 200 day average around 2030. I wonder what a possible BREXIT of the UK may do to the markets the coming week?"
Apparently the Brexit did not produce any additional effect to the S&P500 than what I already expected last week; a move further down towards 2030 as I mentioned a week ago. But, as you can see in the chart a big move down in a single day on Friday, reaching price support and the 100 day simple moving average. Probably there will be some pullback now, but medium term I expect a further move down. Next down targets are at 2000, 1960 and 1920. Longer term the target is 1625.
Sylvain Vervoort http://stocata.org/