It almost feels as though an invisible force is propping up the market and holding oil down. Some say this is big brother at work in an effort keep voters happy and the current leaders in office.

Tomorrow’s midterm elections are a major wild card, but I don’t get involved in political discussion for several reasons. For starters, I am Canadian, so I’m an outsider looking in when it comes to U.S. politics. And, more importantly, I prefer to trade the charts and not getting caught up in the Wall Street hype.

So let’s take a look at some charts for the market, gold and oil.

The broad market, as shown below in the chart of the SPDR S&P 500 (NYSE: SPY), has been finding buyers, and it looks as though it’s ready for another bounce.

I do want to note that Tuesday or Wednesday we could see a very sharp move in the market as investors around the world digest the Election Day outcome. It is very important to keep positions small and or use protective stops incase of a flash crash or flash rally for those of you trying to pick a top.

SPY Chart

The price of gold looks to be setting up for another wave down in my opinion. More often than not, we see a sharp pullback, sideways chop, then a pop above recent highs. It’s that pop above recent highs that tends to suck in long positions only to roll over and make new lows quickly after. As noted in previous reports, gold has support around $1,300 area, and that’s what I am looking for.

Again, this week’s election will trump recent price action, so we really just need to sit tight until the smoke settles.

Gold Price – Futures Contract

Crude oil has been trading sideways for a solid month while the U.S. dollar has been dropping at tremendous rate. Many oil traders believe the price is being manipulated to stay down until the election is finished, because of the strong negative effect rising oil prices have on the economy/end user/voters.

Crude Oil Futures

In short, this is a going to be a wild week in the market. Keeping position sizes small and using protective stops is crucial during times like these. Overall, I am neutral on the market for a couple days until we see what type of blip we get on the charts.

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