Markets Geared to Break Out

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Stocks closed slightly lower Wednesday ahead of today’s Brexit vote, as polls showed the two outcomes within 1% of each other. The euro and British pound both rose against the U.S. dollar.

Crude oil lost 1.4% at $49.13 a barrel after a report showed inventories fell less than expected. Energy was the worst-performing sector, off 0.6%. Notable decliners included Exxon Mobil Corporation (XOM), down 0.4%, Chevron Corporation (CVX), off 0.9%, and Devon Energy Corp (DVN), which lost 0.7%. But Phillips 66 (PSX) rose 0.2% on reported insider buying.

Software stocks fell as Adobe Systems Incorporated (ADBE) issued disappointing guidance. The stock closed 5.7% lower. And Red Hat Inc (RHT) declined 0.8%, while HP Inc (HPQ) lost 5.4%.

At Wednesday’s close, the Dow Jones Industrial Average fell 49 points to 17,781, the S&P 500 lost 3 points at 2,085, the Nasdaq was down 10 points at 4,833, and the Russell 2000 was off 5 points at 1,149.

The NYSE Composite’s primary exchange traded 516 million shares with total volume of 3.2 billion. The Nasdaq crossed 1.7 billion shares. On the Big Board, advancers outpaced decliners by 1.3-to-1, and on the Nasdaq, decliners led by 1.4-to-1. Block trades on the NYSE fell to 4,827 from 5,070 on Monday.

Dow Jones Industrial Average Chart
Click to Enlarge

Chart Key

Both the Dow Jones Industrial Average and S&P 500 (see Monday’s Daily Market Outlook) show inflection points at Wednesday’s highs. And both are supported by MACD buy signals, as well as buy signals from and my proprietary indicator, the Collins-Bollinger Reversal (CBR).

Conclusion

The Brexit has everything frozen in place. However, our markets are geared to break out.

The stock market’s daily gyrations are the sum of literary millions of people’s decisions. But the charts show a slight tilt in favor of Britain staying with the EU.

Whatever the Brits do today, in the future, we will look back on this as “the day that was.”

Today’s Trading Landscape

To see a list of the companies reporting earnings today, click here.

For a list of this week’s economic reports due out, click here.


Article printed from InvestorPlace Media, https://investorplace.com/2016/06/daily-market-outlook-markets-geared-break/.

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