This is a long term, monthly candlestick look at the SPX and the overall trend it appears to be respecting quite well. Overall the market is obviously bullish, but we cant ignore the upper resistance trend line we are currently at along with indicator divergence. These are 2 technical indicators which may signal another correction. This combined with fundamental analysis points like stimulus uncertainty and a highly contentious election in 10 days, we may want to hold on to our cash or explore the idea of short positions. The election polling is leaning in favor of Joe Biden, but lets not forget how challenging Donald Trump will be if the initial results are not in his favor. There is speculation based on his comments that he will not relinquish the office calmly, and we could see the results of the election be taken to the courts, which would increase market volitality greatly. This is just my analysis of the near term market conditions by looking at the long term market. Overall I am a bull, but right now, maybe just a baby bull.
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