Waiting…Waiting…
A good range this morning in S&Ps as sellers stepped in at the open, taking this market below our pivotal area of 1441.50 to 1445.
The high thus far is 1445 and the low is 1428.50. Currently, we’re trading around 1434.
On the open, we saw significant sellers at 1444, before the market broke down to 1440. From that level, we went down to yesterday’s low at 1432 and, from there, put in a low at 1428.50.
I believe there is a lot of skepticism in this market based on the waiting game of the election. Technically, the market has a short bias as long as we stay under 1437. And, technically, I’d be a buyer if we get above 1437. But overall, I’m not looking for much activity mid-day as we continue to await election results.
One word of warning: remember that technical analysis gets thrown out the window if there is a news event. As we stated this morning, the election results are likely to move this market — a probable rally for a Bush election and sell-off for Gore. But these may be moves to fade in anticipation of a reversal.
In other words, this may be a “buy the rumor, sell the fact” situation. And in the meantime, we’re on the sidelines until 2 p.m. Central.