Buying Thrust?
All eyes in the equity index complex continue to be focused on Tuesday’s
election. Volume is running at 60% of last week’s volume. The SPZ has taken out
last week’s high of 1445, moving to a session high of 1448. We are looking for a
buying thrust that could take us toward the 1455 level before interest subsides.
In addition, we have a 1468 target over the next few sessions. This level
represents a 61.8% retracement from the September 1 high of 1556.50 to the
October lows of 1324.80.
Finally, it is worth noting that many traders are taking off the next two
days until the picture becomes clear post election. We advise to stay close to
the sideline as volatility is nil.
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