Dow Jones Industrial Average plunged more than 600 points on Friday after Britain voted 51.9% to 48.1% to leave EU. Although, it is believed that Brexit has little direct impact to US economy and will postpone the rate hike from Fed, the uncertainty about the impact to UK, EU and Global economy contribute to the sell-off. For the week S&P 500 index closed at 2037, down 1.63%, Dow Jones Industrial Average lost 1.55% and the technology laden NASDAQ composite index decreased 1.92%.
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| Weekly chart of S&P 500 index |
As we have said that 2100 level is a very strong resistance level, the S&P 500 index has again tested its support by falling a bit below its 28 week moving average. Next week will be a critical week to see if the index will bounce right back.
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