One has to wonder what effect, if any, the election results will have on the markets. SPX appears to be slowing over the past two days, but any market needs a rest after such a torrid run higher. SPX closed down $6 at $2012 and RUT dropped $5 to $1165. But look at today's price action on SPX. It opened at $2016 and traded down as low as $2001 before recovering into the close. That price action tells me that there are still a large number of bulls who are waiting to step in and buy on any pull back. On the other hand, volatility has been edging up with the VIX opening Monday at 13.8% and closing today at 14.9%.

I watch for divergences between SPX and the VIX. Sometimes that gives us an early warning. SPX has traded slightly higher for the last three days with an open Friday at $2001 and a close today at $2012. That slightly bullish action on SPX together with a slight increase in volatility makes me think the market isn't quite sure which way the election will push prices.

Trading volume was mixed today with a slight increase in the trading volume of the S&P 500 up to its 50 dma at 2.1 billion shares. Trading on the NYSE increased 7% and trading volume decreased 5% on NASDAQ.

It's almost time to go watch the election returns.