liberatedstocktrader

Election Day Is D Day For Stocks & For America

Short
SPCFD:SPX   S&P 500 Index
D Day Was an Important Historical Day & It Might Be Again.

Having discussed in my previous idea the stock market during election years and the fact that a crisis during an election year invariable leads to a change of president & party.

I want to highlight the current trend and the D Day spot it is heading towards.

Here are 8 observations (with numbers marked on the chart):

1. Stocks Bounced off the 2-year resistance line (the uptrend of new all-time highs)
2. This downtrend is heading directly for the November 3rd election date.
3. The election date and the downtrend correspond exactly to the 10-year support line for the S&P500
4. The LST Crash Detector worked well for the majority of the crash from Feb 2000
5. The LST Crash Detector signals the start of the next crash.
6. The market is moving down on heavy volume ( bearish )
7. The Advance-Decline Ratio is weakening, despite obvious Fed buying
8. RSI confirmed the correction.

The fed cannot bolster the stock market if confidence breaks. My research shows that the Fed own 2.5% of stocks. Up from 1.5%.

Hypothesis: Under 3000 by election day.

So what will D Day be?

Decision Day
Democrat Day
Disaster Day
or
(in) Dependence Day

You decide!

Comments

About as a "compelling" a presentation/writeup
that I have seen on Tradingview,..
in a long,long time.
The word here is compelling. ..
Read this a couple times, and let it sink in...
A+ , Mr.Moore
Thank you.
+3 Reply
@The_Unwind, Thanks Joe, an A+ from an illustrious trader like yourself is a compliment indeed. :)
+2 Reply
ThanksForSharing
+1 Reply
thanks
my Analysis
Reply
ThanksForSharing.
Reply
Agreed! Great breakdown, 2850 at election is about dead center on my Nov target...


Lets not forget about the Stocks Above 50 Day Average (S5FI) too, that's starting to look scary.
Reply
Nice charts! Really like seeing multiple indicators to support an idea rather than only a candle chart an arrow.
Reply
@WTFpattern, HAHA yes you are exactly right. Preferably price-volume indicators, price indicators, and pure price/volume action. There just was not enough space on the screen for the full technical analysis. Thanks for the comment.
+1 Reply