A day like today can’t be ignored: 2.22% 46+ points in the S&P. The media has interpreted this explosion as market relief that Hillary will win the election. That, of course, was combined with oversold conditions and prices resting on the 200 day moving average and an unusual numbers days closing down.
We have frequently taken such power bars as buy signals. We suspect that this could be the beginning of a surge upwards, so we will scale in on a small scale and very cautiously. This is a bold move and readers should not take it lightly. Waiting for confirmation is more conserevative and waiting for the entire formation to be taken out is even more conservative.
Remember that contrarians still officially are in charge. So they can easily nip this rally in the bud.