New Target update based on overlapping value area's is $1,550
Mission Accomplished: Target met with 80% rule from breakout of 1260. Initial trade was called from $1,080 back in Dec 2015.
Today after many of UK's banks have lost more than 1/2 of their market cap, Moody's comes out and issues negative reports. Does this not remind you of 2006-2008 starting with Bear Stearns? But instead of Bear Stearns its Deutsche Bank $DB this go around. Now this may take 1.5 to 2 years to play out as it did in '08 but the same writing is on the walls. The same reasons are here as to why I left Bear Stearns just in time to short it from over $100 and it famously sold to JPM for $2.
Bonds are the key ingredient to bank earnings and as you can see with this bid ask spread (spread is where the bank makes their $$) has continued its downtrend from 2012. So we have no spread in stocks, no proprietary trading revenue because of Dodd-Frank, no IPO's and now no bond spreads. And we are to believe the market should be trading above its 2011/'12 highs?
Financials have been weak since 2014. Every year fewer & fewer financials have been doing well enough to overtake the previous level. The Brexit is the final nail in the coffin! The market will not be able to recover until 80%+ of the financial sector melts down with many going bankrupt. And because the central banks have used almost all of their tools at their disposal this may be the next 2008 melt down!
The US economy which has been showing slowing data just recently and Fed chair Yellen admitted only a couple of weeks ago has been actually slowing since April of 2016. Keeping track of Transports is a good way to measure the health of an economy. This may help you prepare to take some risk off the table and move into yield assets. Here is the link from my post in May.
I would expect that the ES will break out of the 3 period consolidation and work its way to the Naked Volume POC. It seems almost everything works in waves of 3's then a run. See my latest video on surfing and trading under the Private Mentoring tab.