Market Calm Before the Election Storm... What to Anticipate
Some of you may be relatively newer traders that have never traded through an election cycle before and may be wondering why the markets seemingly have been ranging the past week or so and what to anticipate as we move closer and closer to the US Presidential election on November 3, 2020. Experienced traders may be thinking along the same lines.
From our past experience, anytime there seems to be uncertainty in the economic climate like there are during election cycles market volatility can often subside and produce what may look like ranging or wedging type scenarios. The 2020 election is doing just that as observed in the S&P 500 chart.
So what does this mean and what can we anticipate as day traders and/or swing traders? More of the same during the uncertainty period until the next US President is determined.
This is not intended to be a political post nor is it intended to be a market prediction. Rather, this article is designed to outline current and past market conditions during periods of uncertainty and that sharp bold moves can occur once the uncertainty period is over. We're anticipating an uptick in market volatility once a decision has been made and will be ready to trade accordingly and hope that you are too!
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UPDATE 10/26/2020
We hope you were able to benefit from this technically precise price action!
UPDATE 11/04/2020
We hope you were able to benefit from this technically precise price action again!
UPDATE 11/05/2020 - Now What???
Hold | Break | Break and Retest