Yesterday was the second day in 2016 that the S&P 500 rose more than 2%. The last was on March 1st. Typically, when this happens there is more to go.
Many missed this as they are too focused on the “dumb and dumber” candidates and their positioning in the last day before the election. Just remember the market always knows. You are NEVER smarter than Mr. Market, as Super Mario Gabelli would say.
Markets have struggled as investors try to make sense of the election. Technically, we learned several things yesterday.
1.At the bottom the S&P 500 usually gets a big white candle. We got that.
2.At the bottom the S&P 500 usually gets a green Heikin Ashi candle. We got that.
3.At the bottom the S&P 500 usually crosses a key moving average. Friday we bounced off the 200 day and yesterday we moved above the 150 day. Confirmation will be a move above the 50 day in a couple of days.
4.At the bottom the S&P 500 usually will move back above key retracement levels.
5.At the bottom, you either get a V or W bottom. We got a V bottom.
