What is the outlook for S&P500 once we get the US Presidential Election results? This is the question that most traders of US stocks and options have in their mind. Let me start with the assertion that we are still in a bear trend in the big picture. Bear market rallies are common, and often take us up by 25% or more. But inevitably, the trend will reassert itself, and we will be back on our way down. So use this rally to get out of those stocks which you might have bought too soon, and wait for better levels to buy them back. As for sell-levels, well, I think 1045 should be a decent level to get out, but if we get to 1136 levels, I might even think of turning short on some weak stocks! To sum up, don’t overstay this rally in the SNP500 beyond 1136. Actually you should watch what happens at 1045 and run for cover if we start coming off from there.
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