It is safe to say that markets don’t like uncertainty but this is on another level. Fears that Donald Trump was going to win the election saw risk-sensitive assets drop faster than Hillary Clinton’s hopes of becoming the next US President overnight.
For the YM emini futures (DIA, quote) contract there is only one game in town at present from a technical perspective, and that’s the resistance level just below the 17,800 region which like a tropical storm, continues to build in strength and develop as the days pass to weeks, and the weeks to months.
There are so many trading maxims it’s often hard to ignore them, but there are two that spring to mind considering the daily chart for the Emini NQ this morning.
With fear continuing to drain away from the VIX, it’s complacency that rules at present as the ultimate index of fear and greed continues to push ever lower and on towards the elusive single figures below ten.
If, like me you have had to take a break from trading and the markets, it can sometimes be difficult to pick up the threads and re-orientate yourself to the emotional state of the market. And perhaps the best place to start is with the major indices, in particular the VIX, the Dollar Index and the NASDAQ.
