The S&P's are moving as projected a few weeks ago. The presidential election launching pad has pushed this rally higher and higher and should continue to do so over the coming several weeks. As you can see from the wave count, a breakout from a multi-month consolidation period has ended and the market is shooting higher, and has a ways to go. Also, seasonal forces, and a pro-stock market Fed, should help the market float higher.
On the S&P futures daily chart of the day contract you'll note in the chart above that the market is well overbought. This is determined by the huge separation of price relative to a key moving average in combination with the MIFT RSI being overbought. In other words, price has moved way to fast than it historically has done so before. This is a sign of a strong rally, but it also means that either some consolidation, or a modest decline is in order to allow the moving average to catch up to price. Any meaningful pullback I would simply view as a buying opportunity at this juncture anyway.
In addition, most individual sectors are also significantly overbought, a few are flat, and only Gold Miners are oversold. So the market is a bit stretched, but ultimately it will move higher in the longer term, so any pullbacks I would see as opportunities to buy.
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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.
