Market Bounce Attempts To Firm Lows
Buyers made a return to markets before heading to the polls. There wasn't a whole lot of volume to today's action but it was enough to mark the action of the previous few days as a possible swing low.
The S&P was one of the stronger indices in its reaction off support. However, it now finds itself coming up against resistance of its 20-day and 50-day MAs. On a positive front, there was a 'buy' trigger in On-Balance-Volume, albeit a weak signal from a flat-lined trend. Relative performance was skewed heavily away from Large Cap stocks.
With a few hours to go before polls close, markets are set up for a positive reaction to the result. I would anticipate an initial sell-off to a Biden (Democrat) win - so is this a preemptive strike to a Trump victory? We will know in the coming days. It would be hard to think lightning could strike twice for bad polling data, but if Trump does win then pollsters will have their work cut out restoring faith in their figures next time.
You've now read my opinion, next read Douglas' blog.
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Investments are held in a pension fund on a buy-and-hold strategy..