Sellers continue to dominate this market. We cleared the first hurdle the Federal Reserve and the market did not respond to the central bank holding rates steady. Next up will be the jobs report on Friday and then the election next Tuesday. Volume fell on the NYSE and rose on the Nasdaq. For stock market bulls Wednesday's action was not you were looking to see. There is no sugar coating this market and we are in danger of continuing this downtrend. Small Cap stocks have been taking the brunt of the selling as it heads towards its 200-day moving average. We do not see many bright spots, but we will continue to grind this market and take what it gives us. At this point, we are going to need a washout with a massive reversal to get us going to the upside.

Prior to the market open the ADP report showed jobs did not grow as hoped missing expectations badly. Last month we saw a similar situation where the ADP report missed the mark prior to the release of the September report. A good chance we may see another weak report and right in front of the election. At this point it may not matter what the jobs report shows. All that matters at this point will be the next President of the United States. Or will it be whether the Fed raises rates in December?

The one thing to look out for here is the market hammering out a bottom. A new low followed by a reversal in large volume would be a good start. Small cap stocks are now in a spot where a potential meaningful bottom could form. Never take your eye off this market as it may surprise you. Stick with Big Wave Trading as we will continue to stay on top of this market. Hurry now and get 40% off our Platinum subscription price. Use coupon code: SPOOKY.

The Fed didn’t move rates, but didn’t spark any buying interest in this market. While the jobs report could be a catalyst it will likely be the election. There are quite a few articles already talking about how badly the market will react to a Trump presidency. Who knows and we’ll have to wait for Tuesday.