All posts by BonTrade

Last weeks action – and mainly on Tuesday- was in preparation for the upcoming election with the accumulations and distributions, and the PA for the rest of the week- Since there was a negative announcement that sent prices plunging- it only made sense that there would be a subsequent announcement to send them back higher before the election. It would also be highly likely that based on this AM’s PA, we should see a fair amount of volatility today and this week

On both Monday and Tuesday last week, the ES tried to break the 2150 level and failed. The big market was over 2150 both days though. The market basically declined all week in the same narrow range it has been in since September 9. The “surprise” announcement on Friday at one PM had the market retest and then recover in the same narrow range. Although there will probably be some volatility this week, I suspect it will be within the same narrow range, overall. I still feel this narrow trading is preparation for a larger move after the election and into next year. We are still leaning toward a bull market, however it will most likely be be tenuous and erratic at best.