There was some follow-through to yesterday's buying, but resistance wasn't breached in newly defined channels and wedges. Will there be a 'sell the news' event tomorrow once the election is announced?
The S&P tagged its 50-day MA before it came back to rest under declining channel. Volume dropped for the second day, but there was an MACD trigger 'buy'.
(Click on image to enlarge)
The Nasdaq is back inside prior congestion where things could get tricky for bulls. Watch for a tag of the 50-day MA, this might be the cue for a short position.
(Click on image to enlarge)
The Russell 2000 also finished at wedge resistance. However, this downward angled wedge is typically bullish, so confirmation of the election result might be enough to deliver an upside breakout.
(Click on image to enlarge)
Obama's election was followed by a sell-off. A Trump election would certainly see a sell-off, but even a Clinton victory might see some buyers remorse and a little easing of the gains over the past couple of days. Real upside momentum will only kick in if new 52-week highs can be posted, taking markets beyond the levels traded during the summer doldrums.
Comments
Log in or sign up to join the conversation.