October 28, 2020

Trade Triangles Signal Volatility Ahead

Trade Triangles Signal Volatility Ahead
Trade Triangles Signal Volatility Ahead

We are exactly one week away from the 2020 Election, and we have seen a serious spike in COVID-19 infections not only in the U.S. but around the world, which has led to a spike in market volatility.

If you have your Trade Triangle alerts set for the major indexes that we track, you were alerted on Monday that the DOW issued a new red weekly Trade Triangle when it fell -2% on the day, signaling that it was time to head for the sidelines. The S&P 500 and NASDAQ joined the party today, with both indices issuing new red weekly Trade Triangles and falling over -2% on the day.

What’s this mean? Volatility is here to stay for the foreseeable future, esp with the election right around the corner. Something to keep in mind, in 2016, the S&P 500 was down for 9 straight sessions heading into that election. Of course, it bounced back in a HUGE way. So, keep your stops tight if you’re going to continue to trade, or you might want to consider a move to a cash position/sidelines until the election is over.

Key Levels To Watch Next Week:

Every Success,
Jeremy Lutz
INO.com and MarketClub.com