It would be unlikely that a longer term buy signal would be created in the next two days. So far, all we have had is a bounce signal in a downtrending market. Pekelo's BB would confirm that. Any upward momentum will be eventually stifled. If I were to hazard a guess, I would say that we will perhaps get an initial bounce no matter who is elected and the market will then sag again later this year or early next. This would be especially true if Obama were elected. The markets will be supported better by a McCain victory which is more likely that folks think. The bounce that we have right now is simply short covering as an Obama victory has already been priced in at least short term. My long term feel is that the SP has a very good chance of falling to the vicinity of 200 within the next 3 years.
If we go from 960 to 200 or 80% more down from here, I don't think there will be much sideline cash left to come in.
The money may go out of SP, but it does not disappear. It goes to the sidelines or is put to use elsewhere. Most likely though it goes to the sidelines in the hands of relatively few--ie the smart money. Then when the cycle completes itself, it is put back in the system by those few. Cash is King
if i didnt know any better id say that today was a holiday. lite volume and virtually no participation here on ET. quite day.
Huge buying force on first hr as demonstrate by the positive tick index all the way. That buying is now gone.