04Nov1:19 pmEST

Drain. The. Shorts.

Hyperbole aside, it is far from an explosive rally in the market today.

However, bulls may have done just enough to stave off an imminent washout, which became a higher risk the longer we went without sufficiently reacting to oversold conditions--Even lowly GPRO is staging a reversal to green as I write this, perhaps indicative of short-term exhaustion among bears as we gear up for the election and more earnings next week. Other laggards like FEYE and WFM are likely trying to punish some latecomer shorts in their own right, too.

With more and more speculation about various election outcomes and market reactions, I am going to focus even more on the price action and not get too involved with political conjecture. 

Headed into the weekend, a close back over 2100 on the S&P 500 Index likely gives bulls a bit more breathing room into Tuesday's election. But as long as 2090 or so holds below, bears should be prepared for a few days of bouncing even if there is insufficient technical evidence yet of a meaningful bottom. 

More in my usual Midday Video for Members

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