For the S&P 500 index, it all depends on crucial resistance and support area. These are 2075-2080 for resistance and 2022-2030 for support. Short-term traders can play both sides of this market this week. A move above resistance could trigger a move back up to recent highs, but if the index reverses at resistance, we could see a move back down into support. A move into support could be a buying opportunity, but a failure of support signals further downside. Obviously, volatility will pick up later in the week as the Brexit vote may have major implications for S&P 500 if the vote result is "leave", so traders should be mindful of that.
We continue to expect gold to move high as long as it remains higher than major support at $1,190-$1,200 an ounce. This market has exploded higher after testing that area three weeks ago and has now reclaimed a short-term support area around $1,235 to $1,244. Any rotation lower would be a potential buying opportunity. We are watching the near-term support around $1,242 to $1,256, and we are specifically waiting for a price action buy signal before committing to a long position. Note that the Brexit vote may have major implications for gold if the vote result is "leave", so traders should be mindful of that.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.