Heavy Composite:

The Nasdaq is about to get a very strong test of its will here, as it struggles somewhat to hold onto its rising 50 day SMA. We have spoke to its handle on a good looking cup base a week ago now looks very long in the tooth. Both a downward pierce of its 50 day SMA in such close proximity to the one just last month would be a very negative sign. It courageously climbed back above that line after spending just 7 sessions below it between 9/17-25. Remember it is not a crime to fall below that, or other important moving averages, as there will be plenty of stops in the area, but it is crucial to maintain a close distance. Another move underneath that line, could in my opinion undercut the lows made of 10500 in late September and may even travel toward the rising 200 day SMA which would approximately align with the very round 10000 number. There it could potentially begin to repair itself on the way to carving out a double bottom formation. But opinions do not matter at all, and with all the recent negativity, a strong move post election may catch many off guard and the positioned or hedged for big downside would need to scramble and cover their bets.

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