The market will continue with its downward slide for the remainder of the June. I have never seen the market immediately bounce back after such a meltdown. The market will bounce back but not this week - momentum at this time is clearly DOWN. Good luck with your trading for the coming weeks - be cautious.
Are you thinking about trading Gold or GBP? There are ETFs and related options on both. LOVE the fact that in today's markets, ETFs are hot and are quickly growing as a valid alternative to futures. Just a thought.
Actually, the last time the market had a similar gap down (100 points on 24th of August last year), the gap was closed 3 days after with preceding days low being higher than the low on the 24th. This is however not a call that something similar will happen, but I'm bringing attention to the facts.
That was an exhaustion gap, the market had been moving sharply lower prior to the final gap. This gap was made off fresh multi month highs, in fact it was only a few points away from an ATH. This smells and looks like a breakaway gap, and breakaway gaps typically do not get filled quickly.
This current market has nothing to do with technicals whatsoever. It is a pure risk trade. The world is waiting for the UK and unless they move nothing else will in any meaningful direction other than risk-off.