As we move into the elections and the polls narrow with Trump gaining, the power that be will try to push the US share market down to create the image that a Trump victory will be devastating just as they did in Britain. The number to watch in the Dow for today’s closing is 17713. A closing below that should result in a drop to test the 17300 zone perhaps on Monday.
The powers that be are so desperate to paint Hillary as the status quo when in fact he plan to raise taxes significantly will be the final nail in the coffin of the US economy with GDP growth at 1.5% at best, the WORST recovery in history. The economy cannot take what she has in store and raising Social Security taxes on employers will merely result in higher unemployment between that and the Obamacare tax. In this case, we need a wholesale change and by no means the status quo.
In the S&P Cash, a closing today below 205220 will warn of lower prices ahead next week. A close below 203250 will signal a drop to the 193100 level becomes possible.
In gold, only a weekly closing today above 1336 would suggest follow-through to the upside. Otherwise, initial resistance stands at the 1316-1319 level.