Election Day Is D Day For Stocks & For America

Having discussed in my previous idea the stock market during election years and the fact that a crisis during an election year invariable leads to a change of president, I want to highlight the current trend and the D Day spot it is heading towards.

US Election & Stock Market Forcast Chart S&P500
US Election & Stock Market Forcast Chart S&P500

Here are eight observations (with numbers marked on the chart):

  1. Stocks Bounced off the two-year resistance line (the uptrend of new all-time highs)
  2. This downtrend is heading directly for the November 3rd election date.
  3. The election date and the downtrend correspond to the ten-year support line for the S&P500.
  4. The LST Crash Detector worked well for the majority of the crash from Feb 2000
  5. The LST Crash Detector signifies the start of the next crash.
  6. The market is moving down on heavy volume (bearish)
  7. The Advance-Decline Ratio is weakening (despite obvious Fed buying)
  8. RSI confirmed the correction.

Hypothesis: Under 3000, by election day.

So what will D Day be?

  • Decision Day
  • Democrat Day
  • Disaster Day

or

  • (in) Dependence Day

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