U.S. Stocks Rally After Presidential Election, and Gold Sells Off

Looking at the daily S&P 500 chart, below, shows the big bullish reversal that took place last Wednesday, the day after the U.S. election.

This huge bullish reversal indicates that smart money is pricing in a more optimistic future than what common investors and media outlets had predicted if Donald Trump won. The logical play would be to use weakness to buy in the coming days, and there could be 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, and while the price is above the 2,035 level, the bull market remains intact.

The spot gold market fell dramatically last week after briefly breaking above 1,310 resistance and then reversing sharply into the week's close. We could see more downside movement in the near term, so look to sell on a retrace while under the 1,300.00 area on a one-hour, four-hour or daily chart sell signal.

Charts courtesy of LearnToTradeTheMarket.com

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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