ES Morning Update November 7th 2018

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The futures are up this morning as the rally up from the 10/26 low continues. The midterm elections turned out like everyone forecasted with the Republicans keeping control of the Senate and the Democrats gaining control of the House... at least that's the current standing as I write this morning update. It could change as all the votes haven't yet been counted. Anyway, we saw in the charts that the move up was near an end but could continue a little more.

I viewed it as a 50/50 chance on going up this high or just rolling over from the high yesterday. As we all know everything is in the charts and the elections is just a "market mover" event, but not what controls the direction. So unless the Fed's can say something super positive Thursday after the FOMC meeting at 2pm EST I have to think this market is about done on the upside. Today, possibly tomorrow, should see the top of this rally. Next we have the nasty C wave down, which could turn into a full blown crash wave... don't know yet? Either way the next big move is on the downside.

I don't expect much this week but next week should do some serious damage to the bulls. Anyway, for today I'm not sure about the market... like will it hold up here or erase all the gains and go negative to start the C wave? From an "election" standpoint I'd think they won't let it drop much as they want "all eyes" off the market and onto the results of this midterm. Regardless, today (maybe tomorrow?) looks to be the last chance to board the southbound train.

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