Election Day Volatility — Relief Bounce or More Pressure?
by Tony Rago
The NQ tagged its 200-day moving average and could be setting up for a relief bounce today. But don’t assume that means the selling pressure is behind us. Any rally could run into a ceiling if ES follows through with its own test of the 200-day, which sits roughly 150 points below current levels. It’s also important to keep the bigger picture in perspective: the S&P is only 4.5% off its all-time high, while the Nasdaq remains in correction territory. That divergence tells us there’s still a meaningful difference in the damage beneath the surface. Add Election Day to the mix, and we have the ingredients for a bumpy session with plenty of headlines capable of moving the tape.
Today is about staying nimble and not getting married to a direction. We could see buyers step in for a bounce, but we’ll need to see how price reacts around resistance before treating it as a sustainable move. On the other hand, if sellers regain control, don’t fight the trend just because the market looks oversold. Let the opening range develop, respect your levels, and keep risk tight in a headline-driven environment. There will be opportunities, but discipline is what will separate the good trades from the unnecessary ones. Let’s get after it! 💪
👉 Full breakdown is inside today’s Pre-Market Playbook.
Check it out here and trade it smart.
Until next time,
Tony
