For a few weeks now, I have been updating everyone on what I thought the market was doing with regards to the elections. It appeared to me the market was making it known it wanted HRC to win the election due to a few things, but due mostly to wanting to keep the fed head in office. It wants Yellen in the worst way, because the market is enjoying the inflation she's created, and apparently will keep creating in the years ahead. If Trump were to win the election, it would likely bring about a change at the fed to a more hawkish person. That's the last thing this market wants. It wants inflation and nothing but that.

A rising-rate fed head creates deflation, and that's a big problem for a bull market that's thriving in an inflation bubble. Last night the market received the type of news it wanted to hear. The FBI suddenly cleared HRC from all wrong doing, and, thus, won't be indicting her. Great timing on a Sunday night just before the market opens in the morning. The futures exploded on the news and never gave it up. The market gaped up on the open over 20 S&P 500 points, which is very rare and kept climbing. A gap and run. Something we haven't seen for a long time. We'd get a series of gap ups and down of about seven to ten points, and then they would always fail.

Now Edwards Lifesciences Corp. (EW) had a gap up that was huge and it held. A change of recent character. Never argue with a change of character on this type of news. So up we went, taking back the lost support, which had put the market in jeopardy. One piece of news took it all back. So now we wait on the vote tomorrow, and we'll see what the market does with it. No way to know who will win, although it looks like it will be HRC. If Trump wins, the market will likely crash out short-term. It will be quite interesting to see how much further the market runs if HRC wins. Will it finally take out the double top at 2194? We shall likely find out in a couple of days.

A few years back the market stopped being the market. It started to trade only on the actions of our fed Governor, along with the other central bankers around the world. It took away from truth. The market began to ignore all the bad news hitting it on the economy, not only here, but all over the world. It didn't care any longer about declining earnings. It just wanted to inflate out based on low rates. Nothing else mattered. Finally, the market double topped at 2194 on the S&P 500. The market finally telling us all that we've gone as far as we can under current circumstances. We actually broke down briefly below the critical 200-day exponential moving average.

Then last night came, which tells us maybe 2194 isn't all we'll be getting. We may go back to not caring about all the things on which the old stock market used to trade. It's a different world for the market. We'll know all we need to know once the election is over.

Peace,

Jack

Jack Steiman is author of SwingTradeOnline.com ( www.swingtradeonline.com ). Former columnist for TheStreet.com, Jack is renowned for calling major shifts in the market, including the market bottom in mid-2002 and the market top in October 2007.

Mr. Steiman's commentaries and index analysis represent his own opinions and should not be relied upon for purposes of effecting securities transactions or other investing strategies, nor should they be construed as an offer or solicitation of an offer to sell or buy any security. You should not interpret Mr. Steiman's opinions as constituting investment advice. Trades mentioned on the site are hypothetical, not actual, positions.

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