Technically speaking we are in the wave 5 of this current structure which is the last wave, after which we expect a reversal or a bearish higher degree corrective structure for a trend continuation. Both are good for the shorts.
Now Fundamentally we are In the midst of one of the most polarizing elections of America’s history, we have seen more fluctuation in the market than in recent years. While fluctuation is normal, it can cause investors to make decisions that may not be the best for them. Panic selling is a moment where an investor or a group of investors decides that they want to go completely to cash and they sell everything they have in the market—regardless of the quality, efficiency or effectiveness of their holdings. Basically, they just throw up their hands and sell everything. As prices are driven down, more panic sets in and we get stuck in a vicious cycle.
Panic selling will drive the s&p 500 down in a way that is artificial—the price reduces but the quality does not. That means if 1,000 people are all panic selling and trying to sell off everything at once, someone out there (usually an institution, a hedge fund or a wealthy individual) is going to be able to buy s&p 500 at a much lower price.
Now Fundamentally we are In the midst of one of the most polarizing elections of America’s history, we have seen more fluctuation in the market than in recent years. While fluctuation is normal, it can cause investors to make decisions that may not be the best for them. Panic selling is a moment where an investor or a group of investors decides that they want to go completely to cash and they sell everything they have in the market—regardless of the quality, efficiency or effectiveness of their holdings. Basically, they just throw up their hands and sell everything. As prices are driven down, more panic sets in and we get stuck in a vicious cycle.
Panic selling will drive the s&p 500 down in a way that is artificial—the price reduces but the quality does not. That means if 1,000 people are all panic selling and trying to sell off everything at once, someone out there (usually an institution, a hedge fund or a wealthy individual) is going to be able to buy s&p 500 at a much lower price.
