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:
- S&P 500 (CME:SP500): 3,549.85
- Dow (INDEX:DJI): 28,957.90
- NASDAQ (NASDAQ:COMP): 11,965.54
- U.S. Dollar (ICE:DX): 93.90
- Gold (NYMEX:GC.Z20): 1,869.10
- Crude Oil (NYMEX:CL.Z20): 93.01
- Bitcoin (BITCOIN:BITSTAMPUSD): 11,175.99