It looks like there is a certain appetite for risk going through the markets and into the US election as stock indices continue to price Clinton’s victory as almost a lock.
S&P 500 daily
You wouldn’t be able to miss a stock market headline if you’re a financial news junkie on social media and that big, green daily candle is why.
Trying to be a voice of reason however, price is simply still capped by intra-day channel resistance and backed up by that past swing high that we got so excited about when the S&P 500 was breaking out of to record highs.
Moving closer to home and taking a look at the SPI 200 indices chart, we see price sitting at an equally important resistance level that we’ve seen price react off in either direction:
SPI 200 daily
This chart is nice because of the obvious confluence of resistance as price pulls back to retest the broken intra-day trend line.
Moving forward and with traders buying indices and the obvious return of a risk appetite, Commodities like Copper, continue to rip.
Heading back to the end of October on that linked blog, Copper caught our eye purely for the higher time frame support level that price had pulled back to test for what was a fourth time:
“Taking a look at the Copper chart, we see that this also coincides with a huge technical support level on the daily:
Time and time again certain explanations are given for the reason certain assets rip, but can you argue with that support level?
No you can’t.
Learning the personality of a market is a key aspect of developing a trading strategy and the way that Commodities trend like this, often without even the hint of a pullback, is one such personality trait.
Wrapping up on a Tuesday, election volatility is expected to properly begin tonight. Do NOT do anything stupid and keep in mind our implemented election margin requirements.
Best of probabilities to you and remember…
CNY Trade Balance
GBP Manufacturing Production m/m
USD Presidential Election
Take advantage of opportunity in the market with Australian regulated forex broker, Vantage FX.
This is a guest post originally appeared on Vantage FX. Reposted with permission.