The market has been strong and holding up even in the face of "Brexit" the British referendum which resulted in the majority deciding to vote "leave".

Trading the markets has a lot to do with psychology and many veteran traders are well aware of this.

Which brings me to my next point, July 2015, or more precisely July 5th, 2015, when Greece voters overwhelmingly voted no in their own referendum or popular vote.

Shortly after the event there was a market high on 7/20/15, and then the following sell-off afterwards.

Well sometimes history rhymes and this might be one of those times. The recent event took place June 23rd, 2016 which was known as "Brexit". Now the worst is behind us, or is it? This is where psychology plays a role in trading the markets.

The market has reacted strongly to the upside, will it continue? Take a look at the 2 year weeky chart below of NYA or NYSE.

There are a few cycles on there, and one of them terminates next week which looks like it is going to be a potential cycle high. This is two weeks after a weekly cycle low forecasted previously.
Take notice of the potential megaphone topping pattern, and bearish divergence on the oscillator at the bottom of the chart.
All the bulls are crying new all time highs, new all time highs, new all time highs! Do you really want to buy this?

Joseph VanDerveer is the Chief Technical Analyst with 8 years experience in the trenches trading the markets with a brand new website and service at www.doubleplayoptions.com

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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