Election
Quiet buying off the lows on election day Tuesday. The index equity complex is extremely quiet, with volume running at extremely low levels.
I am still of the opinion that we will trade up to 1468 before the week is out in the SPZ. However, one negative thorn would be this: the longer we stay in this area and trade sideways, the more likely it is that we will not base and move higher — rather, our next move will be to the downside. This is why it is so critical that the market rally from higher levels in a timely fashion. By this, I mean if we expect an Xmas rally and, in the words of Billy Ray Valentine “getting the GI Joes with the Kung Fu grip,” this market needs to make a stand with strong buying in the next 10 sessions. If we don’t see this, I think it will be a very unhappy New Year.
As for the rest of the session, we are not expecting much. In fact, I would suggest not to trade.