Bracing for Brexit Vote

After the initial spike up this morning, the rest of the day was relatively dull for the SPX, as everyone awaits the Brexit vote this evening. With a major catalyst like this poised to bring some volatility back into the market, one ought to have a considerable edge if planning to make any big bets. Unfortunately at this juncture, I don't see that edge, at least in the short-term. Under the two potential counts proposed, both should be putting in a local top soon for at least a corrective retrace that holds above the June low as blue wave (ii). However, a spike higher before hand, even above the June high is possible, especially if it is going to be followed by a strong reversal under the red count for a b-wave top of an expanded flat wave 2. Therefore, unless you are holding longer-term swing positions and won't be bothered by the shorter-term whipsaw likely coming, waiting until the dust settles may be the best strategy here.

$SPX - Micro - Jun-23 1349 PM (1 hour)
$SPX - Micro - Jun-23 1349 PM (1 hour)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.