Post-Election Blues?

The market saw a rather embaressing ramp based on more election-rumour nonsense this morning. The big issue for the rest of this week, and indeed, into year-end, will be whether the market suffers a bout of 'ohh, its over, what now?'


sp'weekly

sp'daily5f

Summary

When this post appears, we may already have a reasonable idea of who has won the US presidency. Regardless of that though, the charts continue to warn of...trouble..

The daily index cycles are still presenting clear bear flags. Only a daily close >1445/50 would negate the flag.

The weekly charts are also suggesting underlying weakness, with a very clear downside target of sp'1345/20 across the next few weeks.

It is hard to know how we'll trade Wednesday. The hourly index charts are starting to rollover, so there is some inclination for weakness. Yet, if there is any day when the usual rules don't apply, it will be tomorrow.

One thing is for sure, there will be a lot of delighted, but also VERY moody and disappointed Americans tomorrow morning.

Goodnight from London