The upside price breakout that occurred on November 7, the day after the US mid-term elections, is an incredible display of global investor sentiment regarding the GOP success in the Senate and the continued business-friendly expectations originating out of Washington DC. The move shows how clearly a global capital market shift is still engaged in the US markets and how many global investors are counting on the US to drive ROI and economic growth going forward.
Yet, we feel it is important to urge investors that our modeling systems are still suggesting an ultimate price bottom should be setting up near November 8~15 and that we could still see a bit of downward price rotation over the next few days before this ultimate price bottom completes. It might be too easy to get caught up in this move and fail to properly understand the price rotation risks that are still active in the time/price horizon.
The ES was +48.00 (+1.74%). This is an incredible move higher and the 2790 level becomes critical support for the markets as long as the price is able to stay above that level.
The NQ was +172.50 (+2.45%) and that shows just how clearly investors are piling into technology, healthcare and biotech after the US elections. This is a real vote from investors who believe President Trump will be able to navigate any issues going forward and that the US economy will continue to push out strong numbers.
