FTSE 100 Support 5899 5884 5760 5715 5709 5537 5403
FTSE 100 Resistance 6036 6125 6140 6190 6258

Good morning. Well I expect the fallout from the Leave vote winning the referendum is going to last a while now for the FTSE 1oo and the markets in general, and already Westminster has defended into a slightly chaotic mess with firings, resignations and arguments galore. A lot of talk around invoking Article 50, and what a poisoned chalice the next leader of the Conservatives will have – whether thats Boris or someone else. Labour in disarray also with resignations of several shadow ministers. Anyway, we are where are so lets trade around it, the volatility certainly helps once you get the move right!

US & Asia Overnight from Bloomberg

• More than $2.5 trillion wiped from global equities on Friday
• U.K. politics in disarray as investors sketch path ahead

Asian stocks outside Japan fell as Britain’s vote to leave the European Union continued to roil global financial markets. Japanese stocks rose as the yen steadied following its biggest surge since 1998.

The MSCI Asia Pacific Index excluding Japan dropped 0.9 percent, extending declines after global shares tumbled on Friday. Japan’s Topix added 1.1 percent, rebounding from its worst loss since the aftermath of the March 2011 earthquake. The British pound plummeted to a 31-year low as investors grapple with unanswered questions on the details of Britain’s exit from the EU. Investors are watching for policy action by central banks globally to ease the market turmoil and pump liquidity into financial markets.“There’s some expectation for policy cooperation,” said Shoji Hirakawa, chief global strategist at Tokai Tokyo Research Center in the city. “But until we actually see this materializing, it’s difficult for the market to gain strength.”

Brexit wiped more than $2.5 trillion from global equity values on Friday. Prime Minister David Cameron resigned without spelling out when the U.K. intends to leave the EU and eight members of Labour Party leader Jeremy Corbyn’s team quit amid calls for his ouster. U.S. Secretary of State John Kerry travels to Brussels and then London on Monday as Nicola Sturgeon, the first minister of Scotland, which voted to remain in the EU, said there’s a possibility of a second referendum on independence from the U.K.

Japan Prime Minister Shinzo Abe issued instructions for various measures to stabilize markets, Finance Minister Taro Aso told reporters in Tokyo after a meeting Monday. Abe ordered the Bank of Japan to provide funds to support the financial system, and gave instructions to ensure liquidity, BOJ Deputy Governor Hiroshi Nakaso said.

More Referendums

“Investors are looking for further developments in the Brexit aftermath,” said Bernard Aw, a strategist at IG Asia Pte in Singapore. “My main worry is related to Brexit, especially on the possibility of more referendums from EU countries. Should such a scenario gain traction, we can expect more risk aversion in global markets.”

Japan’s Topix index rose Monday as the yen traded at 101.71 a dollar. The yen was closing in on 99 at one point on Friday as investors rushed for the relative safety of Japanese government bonds. Some strategists and investors say the rally in the currency isn’t over, with HSBC Holdings Plc and GCI Asset Management Corp. mooting a rise to 95 against the greenback.
Australia’s S&P/ASX 200 Index added 0.2 percent, the only other major market along with Japan to post gains on Monday. Still, losses at companies with earnings generated in the U.K. continued Friday’s declines. Henderson Group Plc slumped 11 percent and BT Investment Management Ltd. sank 6.9 percent.

South Korea’s Kospi index and Taiwan’s Taiex Index each fell 0.4 percent. Singapore’s Straits Times Index declined 0.5 percent and New Zealand’s S&P/NZX 50 Index lost 0.3 percent.

The Hang Seng Index retreated 1.2 percent. Hong Kong’s benchmark slumped 2.9 percent on Friday, its biggest drop since Feb. 11, as HSBC Holdings Plc and Standard Chartered Plc tumbled.

The Shanghai Composite Index increased 0.2 percent. The Chinese central bank weakened the daily fixing of the yuan reference rate by the most since August on Monday.

Futures on the S&P 500 Index dropped 0.7 percent. The U.S. equity benchmark index declined 3.6 percent on Friday, the most since August 2015. [Bloomberg]

FTSE 100 Outlook and Prediction

Still all up in the air really and is certainly going to be an interesting few weeks ahead. Is this the start of a few others leaving the EU – Sweden etc – maybe it is, maybe it isn’t but we are certainly going to get a changing landscape over the next decade. Anyway, for today we have the pivot at 6036 for initial resistance if the bulls continue this bounce form 5880 that we have had overnight. Above that we could be on for a test of the 100 Hull MA on the 2 hour at 6190 which looks a good spot for a short, as we also have the live charts pivot here at 6188. The 30min chart is still bearish to start with, showing resistance at 5995, so if that stays intact initially then a drop down to test 5900 looks likely – we have a major PRT support line here.