WSE: Before opening

Tuesday was the fifth consecutive day of growing risk aversion and a flight of capital to safe havens. Uncertainty among investors is increasing with the approach of the expected decision of central banks (the Fed on Wednesday, on Thursday the Bank of Japan) and the outcome of the referendum on June 23 (Brexit). The result of this uncertainty was further declines in the vast majority of stock markets, the strengthening of currencies such as the dollar, yen and franc, as well as further declines in yields of belonging to the safest bonds.

Tuesday's session on Wall Street ended in a series of successive declines in the major indexes. The broad S&P500 loss was less than 0.2 percent. Current quotations of the contract for the S&P 500 is slightly positive which should give pros opening of European markets. However it is difficult to count on the fireworks when the variables that caused recent declines remain in force.

In case of the WIG20, the most important will be the condition of the zloty, which strength or weakness have this year crucial impact for sentiment towards blue chips. With the strengthening of the zloty - difficult before the release of the FOMC statement - activity on the demand side will be easier.

If today and tomorrow any new information will not appear, the balance of power seems relatively clear. The chart of the WIG20 shows two options for the index:

1. The decrease under the area of support in the region of 1,750 points will open the way to a meeting with the January lows set in the vicinity of 1,650 points.

2. Defense of 1,750 points directs attention to the June highs in the region of 1,850 points and may trigger speculation about the formation of a double bottom, when the potential for growth can be estimated at more than 100 points.