It’s about to get bumpy.
The ETF that mirrors the S&P500, SPY, has broken the 2016 trend line; support shown as upward sloping blue line on chart (below). Granted, it’s a pretty steep trend line, however, the fact that price violated this price zone is bearish.
S&P 500 Index ETF (SPY) daily
In addition, price is fast approaching primary support; the upward sloping white trend line from the bottom in 2009 (above and below charts). This rising support zone was broken earlier in the year and recovered nicely making a new all time high this past summer.
S&P 500 Index ETF (SPY) weekly
SPY has been selling off recently most likely due to the uncertainty of the election outcome. I would expect price to be all over the map next week.
Continue to hold open positions.
I have quite a few nice trade set ups but risk is just too high until the election dust settles.
A subscriber from Australia asked me if the $AU will tank if Trump is elected. I called Donald and asked him. He said if he gets elected the $AU will be the best and biggest dollar of all time in the southern hemisphere.
Another subscriber from the UK asked if the British Pound will rally with a Hillary win. I called Hillary. She said she would get back to me either by email or WikiLeaks.
Next week should be interesting.
Trade Smart,
Don Roth