Last week I showed you the incredible square out on the DAX for the Brexit high. Late Monday many charts formed a new square out low, which propelled markets back up. Probably the best example I have for you is the S&P 500, which turned back up at the 1991 handle in 91 hours for the move.
The Brexit vote has triggered an intermediate cycle decline in the stock market. I’m expecting a bear flag and then a final drop into the bottom, but traders also have to be wary of an intervention that could terminate the rest of the decline prematurely.