A bullish perspective on $SPX. We have now backtested the down trend line off the 2015 high. From an oversold position on the daily chart, a break above 2106 would put us in a perfect shape to resume the uptrend.
oh my and I was going to short ES 2105
Election/news doesn't care about oversold/overbought conditions. I'd just be careful. Muddy water out there if you can't see clearly stay out. Wait for the reaction and ride the wave. Just my .02 though!
This is the exact scenario I am expecting to happen to fool amateur/retail traders. My theory is that we get a post-election rally that breaks above a so-called "bull flag" in the SPX and then we rally to attempt a retest of the highs and then we either form a lower high or a marginal new high that fails and then we enter the next phase of the bear market, the recognition phase and the most dangerous. This doesn't have to happen, it is just my preferred scenario.