The market is in a holding pattern as it awaits election results on Tuesday night. Despite some lackluster technical setups and poor action in Apple (AAPL) and the FANG stocks, the DJIA and S&P 500 managed some decent gains. Breadth jump around quite a bit and went from positive to negative before ending at about 4-3 positive. Defensive stocks performed well but it is tough to find a good theme right now.
The most impressive thing about the action today was that the weakness in Apple was contained. It hurt the Nasdaq and Nasdaq 100 but it didn't seem to bother the broader market that much. It is a positive then the market treats stocks individually rather than a group.
Unfortunately, we probably have another day of this choppy trading tomorrow as we wait for the polls to close. While the election is unlikely to have a major impact on the market, we need to let the program trades do their thing.
My major concern is that the charts are setting up in a way for a negative reaction to the election. That could easily change but right now this is a market that is looking like a "sell" rather than a "buy" if the anticipate election results do come to fruition.
Have a good evening. I'll see you tomorrow.