The markets were severely constipated — not only because it was the morning after a big, nastyy election, but because traders were waiting for yet another m-o-m-e-n-t-o-u-s announcement from Bernanke concerning quantitative easing to come. We pored over charts for the E–Mini S&Ps, gold and the dollar nonetheless, and we even tested the water with a real-time bottom-fishing trade in the S&P futures. (I won’t spoil the ending for you.) The day was interesting from an analytical standpoint because the E-Mini S&Ps had reached a very crucial threshold at 1196.50 the night before – an event that we deconstructed with due diligence.
