November the 8th is finally here and soon we will know the next U.S president. There is still fear and uncertainty in the markets, perhaps more than is justified, but I doubt many readers are in a rush to buy equities today (SPY), especially as you will have to chase yesterday's 2.21% rally.
It's far more safe to wait until the results come in and we can see the market's reaction. By which time the SPY could be 4% off last week's lows, and many stocks could be 6-8% off their lows, leaving you fearful of chasing even more. I suspect that's what the market wants. This is how rallies are made.
The Simple Set-up
The S&P500 tested its 200dma on Friday. This is the most watched technical indicator of all, and it comes as a standard, pre-loaded addition to most charts. To add to…