The markets made another move higher today going into tonight's U.S. election results. We saw a very strong bounce on Monday; however, with the VIX still above 18.50, it should only be treated as a bounce at this point. We expect the market to be volatile tomorrow, regardless of the final result. Give yourself a little more time and flexibility when entering or exiting positions. If you don't have to make trades tomorrow, then it may be best to wait until Thursday or Friday before entering new trades.
All three majors moved back up to a more "neutral area" – back above major support levels. This is obviously in anticipation of the election. Keep in mind that tomorrow's move will be mainly reactionary. In fact, it may be a couple of days before things settle down. Once the emotion and speculation is out of the markets, we can then put the focus back on the fundamentals and technicals.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
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