📈 Volatility Continues

The election causes wild swings.

Stock Market Volatility

Right now we are hanging on by our fingernails on the indexes.

Yesterday we undercut, but held our current range. This is the type of behavior I expect to see from the market until we have certainty regarding the outcome of the election.

RSI Divergence

As you can see below, we’ve been developing a pretty significant RSI divergence on the S&P futures.

What is notable to me is that we cracked the 50 line, which as you can see typically leads to a retest of oversold conditions (the 30 line).

I wouldn’t be surprised if we saw selling until we tested the 30 line.

Again, for now short-term trades are ideal until we have election result. Also remember that we have FOMC coming up later this week that has the potential to cause volatility.

Watch this video to get an idea of how I’m approaching the market right now: