Two big events lined up in Dec (Fed rate hike) & Jan (US election results). Huge volatility is expected going forward. With Global Equities near their ATH's, large players would like to book profits & hedge their long positions which implies negative view on global equities in the coming months. Sell on rallies is already going on for last two months. If crucial supports breakdown downmove can accelerate. Risk off sentiment is already evident from Dollar Index (DXY) reaching 100 levels again & sell off in Commodities. Keep a close eye on S&P 500 level (2100) & DAX (10200) if these levels are breached. Nifty will nose dive to 8000-8200 quickly.
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As expected, S&P 500 index blinked first amongst all. Tomorrow's closing below 2120-2100 will confirm breakdown on weekly charts. Trump's victory can take Global equities significantly down while Clinton's win will trigger short covering and relief rally across the world. It is a binary event. Hedge your bets carefully.