Editors' pick: Originally published Nov. 9.
The stock market clearly knows more than most of us do.
The mainstream media and the pundits clearly got the U.S. election wrong with Tuesday's big upset win by Donald Trump.
There was a huge crash as the results started turning for him, followed by a very aggressive bullish reversal in stock markets across the world, indicating that the smart money believes Trump's message is much more pro-business than everyone thought. It turns out that the market is seeing this as an opportunity as opposed to the end of the world that the media were making a potential Trump victory out to be.
Looking at the weekly and daily S&P 500 charts, below, shows the big bullish reversal that took place, indicating that the smart money is pricing in more optimism than what investors and media outlets had predicted if Trump won.
The logical play would be to use weakness to buy in the coming days and we could see a huge upside follow-through into the end of the year. Look for buying opportunities in the S&P 500 between 2,106 and 2,035.00, and while it is above that 2,035 level, the bull market remains intact.
Daily chart -
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