Today, November 5, is the presidential election in the United States, an event that is expected to cause high volatility in financial markets around the world.

According to EuroNews, market analysts are bracing for increased swings as votes unfold, reminiscent of reactions seen during events like Brexit and the 2016 US elections. Newsweek adds that historically, US markets have shown resilience, tending to increase regardless of the winning candidate. For example, during the 2020 election, stocks surged after the vote and continued to rise even though the election results were being contested by former President Trump.

Investor’s Business Daily highlights ideas from Tony Roth, chief investment officer of Wilmington Trust, who says U.S. stocks could rise under Harris or Trump as both candidates propose economic policies that could support market growth.

On October 14our analysis of the S&P 500 (displayed on the US SPX 500 mini FXOpen) highlighted three ascending channels (shown in blue), observing that:

→ these channels have similar slopes and widths;

→ by connecting the top of channel 1, the peak and trough of channel 2 and the bottom of channel 3, we define a wider channel (shown in orange).

A technical review today shows that the S&P 500 (US SPX 500 mini on FXOpen) is trading near the lower edge of the third blue channel, with additional potential support at:

→ old resistance near $5678;

→ the lower limit of the orange channel.

As results come in, market volatility could intensify, challenging these support levels and potentially shaping future dynamics.

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