U.S. stocks on Wednesday (07.11.2018) registered the best day in weeks following midterm election votes that resulted in a split Congress, as expected, but removed a key source of anxiety for Wall Street investors. The S&P 500 index registered its best day in about three weeks, finishing 2.1% at 2,813, and closing above a psychological level at 2,800. When we look at the 5-year chart we can see that S&P 500  is moving in "uptrend". As long S&P 500 is above this trend line and 2,600 points this index is in the "BUY" zone. Short term support and resistance levels are 2,700 and 2,900 points - If the S&P 500 jumps above 2,900 points that would be a "BUY" signal and the open way to 2,940 or even 3,000 points. If S&P 500 falls below 2,750 and after 2,700 points it would be a "SELL" signal and then we have an open way to 2,600 level strong support. From the perspective of economic fundamentals, the US stock market is quite expensive but as long the S&P 500 is above 2,600 points there is no possibility to change the dominant trend of the current "bullish" market. It is important to mention that the US economy is in very good shape, the US growth is advancing at an annual rate of around 4% and for now, there is no important reason to be pessimistic. If the S&P 500 falls below 2,600 points that could be a strong signal of the trend reversal and the open way to 2,500 points. A very bad situation is below 2,500 points and this could be a strong signal of entering in the "bear" market.