SPX Election Trap: Running Stops Before the Real DumpS&P 500 Index CashFX:SPX500AndyMorganSPX500 looking heavy after Friday's tech bloodbath, but we have ISM data Monday and the election Tuesday. Everyone is leaning short right now, so a squeeze is coming first to clean out the late money. The Fundamental Backdrop Tech earnings just nuked the tape, and big money is parking in Treasuries ahead of Tuesday's election. Markets are pricing in a blue sweep, meaning higher corporate taxes and tighter AI regulation are on the table. Bears are in full control, but the short side of the boat is getting crowded. Technical Perspective Friday was a straight puke from the open, trapping everyone who tried to catch the knife. We left a ton of short stops sitting above NY High at 7,640 and Friday High around 7,680. Downside magnet remains the Friday Low at 7,530. POI (Entry Zone): 7,640 — 7,680 Target: 7,530 How I’m Trading This Watching the Asia open to see if they start squeezing this right out of the gate. Given how hard they dumped it Friday, expecting them to drag price up to NY High or even Friday High before the ISM data prints. Too many late short stops piled up, so they need to run those first. Once they clean out the early shorters, looking to step in short targeting Friday Low. We might sweep that low and bounce back up, but I'm just playing the level-to-level flush. Tuesday is the real event. Once early election leaks hit, expecting a massive downside puke just like we saw Friday. NFA. Trade at your own risk. // Andy Morgan