It would be unlikely that a longer term buy signal would be created in the next two days. So far, all we have had is a bounce signal in a downtrending market. Pekelo's BB would confirm that. Any upward momentum will be eventually stifled. If I were to hazard a guess, I would say that we will perhaps get an initial bounce no matter who is elected and the market will then sag again later this year or early next. This would be especially true if Obama were elected. The markets will be supported better by a McCain victory which is more likely that folks think. The bounce that we have right now is simply short covering as an Obama victory has already been priced in at least short term. My long term feel is that the SP has a very good chance of falling to the vicinity of 200 within the next 3 years.
