No Huge Swings Today

After several weeks of wild swings and huge volatility, the market experienced the sort of low volume, tight trading range day that we’ve been harping on recently. Following last week’s huge run, this was the exact sort of consolidation that this market needs, even if it came because market players didn’t want to do too much ahead of tomorrow’s election.

From a technical perspective, things are looking a bit better, and as we move forward, this market needs to show that it can hold key support level and the major indices need to continue to build their bases. We’re starting to see a small number of individual charts starting to set up, but so far, there isn’t any real leadership. If we really are starting to see the market begin the arduous task of repairing itself, we’ll begin seeing specific groups and areas attracting some momentum money, but for now, building longer-term positions remains difficult at best. The most important thing we need to do at this point is stay patient and resist trying to force anything until we get more proof that we’re on the mend.