Despite widespread predictions that a Donald Trump victory would lead to a substantial market drop, the S&P 500 has enjoyed a nice bounce since Trump surprised many by prevailing in the presidential election.
The rally has been particularly pronounced among stocks that could benefit from reduced regulations, such as biotech stocks and the banks, or those that increased infrastructure spending would advantage, such as construction and engineering stocks.
But according to Andrew Keene, CEO of AlphaShark Trading, the market's 1.7 percent rise since the election is set to be reversed — and then some.
"[If, before the election] someone said to me, 'Donald Trump's going to win the presidency and then we're going to be up in the next week after that,' I would have told them they're crazy," Keene mused Wednesday on CNBC's "Trading Nation."
At some point, anxiety over the potential unknowns that could cloud a Donald Trump presidency faded, and a chase for performance set in, in Keene's analysis.
Yet looking forward, he sees the market running into resistance. Diving into a chart of the SPDR S&P 500 ETF (SPY), Keene opines that the ETF will have a hard time getting about $219, a level that roughly corresponds to a record high for the S&P 500.
Below that, Keene says that the $208 level, which appeared to serve as resistance several times before switching over to support, is a "magnet" for the market. Significantly, that is the level at which the SPY bottomed out at the beginning of the month, when Trump-based anxiety was running high.