Some believe that recent falls on sharemarkets are almost unprecedented. They aren't - we saw the same situation four years ago. Back then the Dow fell 8.5% from the highs. This time the Dow is down 2.5%. A link to the CommSec report on the US Election is below. (VIEW LINK)
SUNDAY NIGHT IN THE US and Trump is closing the gap fast. Not surprising that the SPX is down nine days in a row.. Wall Street wants Clinton in the White House and the Republicans in the House, which tonight is looking less likely. What will happen to the markets? A daily losing streak of 9 days is very unusual and created a potential for a big bounce. The SPX reached its 200 day moving average on Friday which is the usual short term bottom. The Dow Transport Index, which leads the SPX, has been consolidating, not falling supporting the view that short term we are down as far as we can go. It is certain that the accusations of election fraud will continue , and the result will be contested, leading to legal challenges, and a wide range of trading... as much as 400 points on election day and maybe more over the week.