No Red Wave but Gridlock Most Likely

FTT/FTX hit Bitcoin

Well the election results seem to point to a gridlock scenario as the Republicans look to take control of the House of Reps. Although the full results are not yet in, yes can you believe it, but it does look like the Democrats will lose control of the House. We saw that many were shocked by the Fetterman win in PA, but in all reality we were not. To say that Oprah’s endorsement for Fetterman over Oz was the nail in the coffin, is well an understatement. Anyway we know that the Biden administration will have a tough go over the remaining 2 years in regards to getting anything done, but the bigger question on many minds is has the Trump influence hurt the Republicans more than helped. If last nights performance is any indication, the Republicans better hope they do some soul searching over the next 2 years and bridge a bipartisan gap. The American people deserve better than what we have received out of DC that’s for damn sure.

Anyway onto the markets which have been in a defensive posture after hitting the 200p Vwap late yesterday. We warned against that level in the Nasdaq futures and we are over 200 points lower than there presently. We expect a defensive posture to continue below that level and only a close above will negate our tone. As far as the technicals, 10958 key location for bears to take over and bulls to hold and the Green Vwap continues to plot lower now at 11190:

Source: CQG, Econemotions.substack.com, Magnelibra.com