The Futures pushed above their average Pink line, which is somehow slightly bullish.
On the other hand, the 20DMF is developing a small negative divergence here, but
the real story is that large caps are attracting much less money than smaller caps.
We can see below that the S&P500 prices are moving still further away from their maximum valuation based on comparative yields, which now stands at $3500. To justify the present valuation, we need to see the 10Y rates revert back down to 3.6% or expected earnings per shares for the S&P500 to jump to 200$ (from 185.31$).
If investors believe that a split Government will help companies reaching that level of expected earnings, it is because they think that Republicans would vote for lower corporate taxes. The consequence of such a decision would be an instantaneous push of the 10Y rates, which will be market negative. This is what happened in the UK with the forced resignation of the Prime Minister just a few weeks ago.
Conclusions:
I do not believe that a Republican win is markets positive as this will impose a split Government for the coming two years.
Better not be long here.
