Monday morning, the S&P 500 Index e-mini futures (ES-Z2) traded lower by 0.50 points to $1405.00 per contract. It was the final trading session before the U.S. elections which will be held today. Often, when an election is this close, many institutional investors will simply wait for the election results to be announced before committing to any new investments. Remember, most financial institutions will use fundamentals as their preferred investing method.
The movement in the U.S. Dollar Index futures (DX-Z2) will usually dictate the action in stocks. As you know, when the U.S. Dollar Index trades higher the major stocks indexes will generally deflate and trade lower. The opposite is true when the U.S. Dollar Index declines the major stock and commodity markets will inflate and trade higher. Some leading equities that will generally trade inversely to the U.S. Dollar Index include ProShares Ultra Silver (ETF) (AGQ), Deutsche Bank AG DB Gold Double Long ETN (DGP), ProShares Ultra DJ-UBS Crude Oil (UCO), and the iPath Dow Jones UBS Copper Total Return Sub-Index ETN (JJC) to name a few.
Below you may find the video.