Tuesday, April 25, 2017 2:59 AM EDT
Going into the first round of the French Presidential election, I figured the best case scenario was the absence of a market sell-off. I never even considered the possibility that the prospect of the election was actually weighing on the stock market
Vol apparently can’t remain elevated no matter what happens on the political front. Populist gets elected: vol crushed. Populist looks like she’s going to lose to a globalist candidate in a second round landslide: vol crushed.
Given all the geopolitical drama and worrisome news headlines, it’s no wonder stocks have stalled for the past several weeks. Especially troubling is the notable underperformance since March 1 in small caps and transports.
SPX bounced from its weekly Intermediate-term support at 2327.20, but was repelled by its Cycle Top resistance at 2354.64 and beneath the trendline of the Orthodox Broadening Top near 2365.00. The SPX is on an aggressive weekly sell signal.