The Dow Bro
The Crash the Dow crowd got themselves an A-B-C correction and we are now to think what next. Support came from the 20 week average as well. So after 5 waves up in wave 1 is this small A-B-C enough or do we get an X wave [61.8% retracement], and another A-B-C down?
Hard to have all the answers but lets at least go back in X.
The analogy we can draw is with previous election periods. Note there are elections where a new party comes to power and those where the existing president is reelected. Both are different. The last time in 2016 the market was down from Aug-Nov in fear of who next, especially Trump. but it did not matter, he won and the market tanked for one night and then rallied away. This time however we just got a big correction in A-B-C so I wonder if it means that we are going to get a Trump rally into the election. Lets see. Obama got his second term inside a bull market. And lost in the 2008 bear market.