Prepare Your Portfolio: The Election Year Cycle High

We continue to expect this election year to see a decline from April to June and believe that last week’s 6 month cycle high marked that high. Equity markets in Presidential election years have a nasty habit of dropping during this period and the eighth year of a Presidential term sees nothing more than a temporary bounce in June before a decline to new lows.

The S&P 500 was turned back from 2,110 – the same level where the big sell-off began last August as well as the high in early November. Watch for a re-break of the breakout level at 2,075. 2,033 is the new pivot low. A break of that level will confirm that the herd has turned.

Get your copy of the April Lindsay Report at Seattle Technical Advisors.

EdApril25.jpg

Related

stocks

Stocks Near An Exhaustion Point

The SPX made a new high for the year last week. So why aren’t we cheering? The S&P 500 cash index...

April 18, 2016