By gaining an impressive +7.1% for the week, the S&P 500 will post its best election week gain since 1932, where it gained +11.6% when Franklin D. Roosevelt defeated President Hoover in 1932. Not to be outdone, the DOW will also post a weekly gain of +7%, and the NASDAQ will lead the pack with a gain of +8.8%. But even with these gains, all three indexes have yet to trigger new green weekly Trade Triangles signaling a move back to long-term long positions.
Will Friday’s pause lead to a sell-off net week, or does the stock market move higher from here?
As the election results continue to drag out, the dollar came under attack, going -1.7% on the week, triggering a new red weekly Trade Triangle indicating that a move to a long-term downtrend could be gaining strength. That move in the dollar proved to be a positive catalyst for gold, which posted its best weekly gain since July of 2019, posting a gain of +4%.
Mid-week crude oil seemed to be riding high, but it has since fallen out of bed, suffering back to back daily losses over -1% and entering a Chart Analysis Score of -100, but it will still post a weekly gain of +4%.
The HUGE winner continues to be Bitcoin, which will post a weekly gain somewhere around +13%. It’s currently trading north of 15K, its highest levels since December of 2017 when it briefly traded above 20K. Can it reach those heights again? Or is a correction coming?
Key Levels To Watch Next Week: