Will the US Presidential Elections Crash the Inventory Market?…

“… the index may nonetheless be wrapping up a counter-trend rally: the crimson W-b/ii, probably focusing on as excessive as $20600, assuming a regular (gray) W-c = W-a relationship. A break beneath the gray W-b, the October 1 low at $19622, would go an extended method to verify this thesis, with full affirmation beneath the September 6 low at $18400.”

Quick-forward: The index topped at $20,600.01 final Tuesday, October 29, and has since declined. Thus, the counter-trend crimson W-b/ii, see Determine 1 beneath, continues to be alive and nicely, however the Bears have but to push the index’s value even beneath the October 1 low. Thus, whereas we hold the warning ranges for the Bears as is, we nonetheless can’t exclude the Bullish potential setup within the charts. Enable us to elucidate beneath.