The stock market in the US continues to tread water,
satisfying neither bulls or bears except for those who
dully trade the chop ahead of election in 10 days.
As noted on the chart included here the S+P 500 is in the midst of
building an indecision pattern in the form of a technical triangle,
with the longer rising trend line technically the more bullish support in the pattern.
However,traders should also keenly observe that a VIX of 27.55,
does not show signs of the bullish complacency commonly seen during market rallys.
There is an old market observation or folklore that says
"Never short a dull market".. which seems particularly appropriate right now.
Obviously the market is laying the foundation, some would say the "base" for a very big move.
My own interpretation is to believe in the most "unexpected market outcome" could come next.
If bearish traders, expecting a potential "hung" election have their way, the market will soon retest major SPX Support at 3000.
And if bullish traders get their way, the US market could have an "explosive breakout" to new all time highs, and then SPX 4000
If you are looking for big money financial clues, continue to watch the strength of the US Dollar around the US election.
Ultimately, most market participants think the market is on the cusp of a very big move.
However, the market could just be completely exhausted from all this real and imagined drama,
and could decide to "punt" just to let things work out the way they are gonna.
Nothing worse than a market,that seems bored to tears and,that can't seem to figure out,.. which way to go next.
THE_UNWIND
10/23/20
Sheltering at the peak of autumn color burst,.. in the woods of Connecticut
satisfying neither bulls or bears except for those who
dully trade the chop ahead of election in 10 days.
As noted on the chart included here the S+P 500 is in the midst of
building an indecision pattern in the form of a technical triangle,
with the longer rising trend line technically the more bullish support in the pattern.
However,traders should also keenly observe that a VIX of 27.55,
does not show signs of the bullish complacency commonly seen during market rallys.
There is an old market observation or folklore that says
"Never short a dull market".. which seems particularly appropriate right now.
Obviously the market is laying the foundation, some would say the "base" for a very big move.
My own interpretation is to believe in the most "unexpected market outcome" could come next.
If bearish traders, expecting a potential "hung" election have their way, the market will soon retest major SPX Support at 3000.
And if bullish traders get their way, the US market could have an "explosive breakout" to new all time highs, and then SPX 4000
If you are looking for big money financial clues, continue to watch the strength of the US Dollar around the US election.
Ultimately, most market participants think the market is on the cusp of a very big move.
However, the market could just be completely exhausted from all this real and imagined drama,
and could decide to "punt" just to let things work out the way they are gonna.
Nothing worse than a market,that seems bored to tears and,that can't seem to figure out,.. which way to go next.
THE_UNWIND
10/23/20
Sheltering at the peak of autumn color burst,.. in the woods of Connecticut
a big move in the market last week.
For the record, the break was to the downside.
THE_UNWIND
11/1/20