It was only a week ago that I posted,
Stocks have risen a year after 18 midterm elections since World War II, with the S&P 500 delivering an average return of 14.5 percent, according to LPL Financial Research.
With the S&P 500 up only 1.3 percent since the midterm election last November, there indeed could still be room for stocks to run in 2019," LPL says in a note.
The year prior to a presidential election has almost always been a good one — in the last 19 such years, the market is up on average 15 percent and 18 out of 19 times it's been positive, according to Slimmon.
In the past week, price finally closed above the red glass ceiling, but closed the week below the major resistence level.
Was it a head fake or a breakout and retest before prices move higher? The S&P 500 ETF, SPY represents the following sectors and percentages.
So the Information Tech SPDR ETF, XLK, price is wedged between previous supply, which is now support and the daily supply at $76.
So the Financial SPDR ETF, XLF, price couldn't even make it back to the the daily supply at $27.35 and currently sitting in daily demand at $25.25.
So, going back to the original question on the SPY, was it a head fake or a breakout and retest before prices move higher? If price breakdown down and breaches the daily demand on the XLK and XLF, it was a head fake and the chart suggest further downside on the SPY.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.