The perfect set-up: S&P 500 touched the 50dma support in a double-bottom pattern after the big-tech led selloff correction. If the support holds, the uptrend continues. If the support fails to hold, we could be talking about the 2000-like bubble-burst, with the next support at 200dma. So, what is it: correction or a bubble burst?
Here is the key variable: Trump promised that the stock market will be at the record highs right before the election on Nov 3rd. I would not bet against him. So, it’s likely this bubble continues to inflate for another 6-7 weeks.
After the election night, it doesn’t really matter who wins, the stock market will start reflecting the reality.