The S&P 500 Index And The US Elections | Theory, Comments & More
First, feel free to hit LIKE to get started…
Now, the chart technicals.
We have a SPX chart with prices closing below EMA50 for the first time since May, we saw a fake breakdown of this level as prices quickly moved back up and resumed growing.
What about the US Elections?
Here is the scenario…
- A SPX is good for the incumbent party, the sitting president, according to past history.
- A SPX (“stock market”) is bad for the sitting president.
If Donald Trump is to win, we are likely to see the SPX continue growing to see a real crash take place just right after the elections. (green)
But if Donald Trump is to lose, we should be seeing the SPX go straight red… (red)
Times are different though, things can always change.
As for the SPX chart by itself, we are looking at strong signals developing… To me, it reads lower prices but signals are not all…
Conditions for change
Starting the week and moving back above EMA50 would signal that the green scenario is most likely…
But staying below this level can lead to even lower prices fast.
Is Trump going to lose then?
Can we really predict the outcome of the SPX or the elections in such turbulent times?
What’s your take?
Please share it with us in the comments section below.