|the Fred Beckey|
A "no" vote on the referendum essentially is the true beginning of the end of the EU, so I suspect that the reaction will not be so muted. Of course, we don't want to see a lock-limit down on the overnight /ES Sunday, but a 30-handle gap open to the 2161 area of SPX would work nicely. We would then sell off the entire week, eventually reaching an interim low at the December FOMC, for a couple of weeks of Santa rally.
But the larger goal for the next couple of months is to cross the big pink megaphone, then bounce into Spring with a phi retrace and backtest of the old rally channel.
Since the Donald won't be using the legacy media during his reign, I have added a free plug-in for his Twitter feed down the left panel. A couple of ads are tacked onto the block, the impressions of which benefit the authors of the plug-in and not this blog.
I still can't believe that the financial press has advanced the idea that Trump spending will be inflationary. If anything, you could start with the idea that they are taking a fiscal instead of a monetary route in all of this. But the results will be the same, inescapable debt-deflation and an eventual spiral. Globalism was the last act in a grand effort to expand credit, by exporting inflation throughout the world. There is simply no easy or safe way to dismantle what we have built here.