Apparently the pattern of selling into potential problems (BREXIT, U.S. Election & Last Night’s Italian Election Outcome) are catalysts for a buying stampede which remains the case for global stock markets in late 2016. As one analyst wrote, “I can’t justify any of this” but that’s the tape baby! So once again shorts were squeezed as European stocks rallied on the day despite the election outcome. Most attributed this to the invisible hand of the ECB’s Mario Draghi who they believed launched the “stick save” to rally markets. He is next up Thursday at the ECB meeting. What can he offer bulls next?

Who the hell knows!

U.S. Sector leaders this day remain Small Caps (IWM) weekly.

Regional Banks (KRE) are also strong within the financial sector as hopes for higher interest rates continues to be a well bid theme.

The HI/LO Indicators, if shown, can be used to demonstrate why market change may soon appear whether the trend is rising or falling. Naturally daily, weekly and even monthly views reflect the possible time sequence these indicators may reflect. My experience in using these have made an impact 2/3rds of the time. That’s about as successful as most such indicators can make.