Crazy Market

The major indices are approaching the -2% level on the day, which would be the worst day for the market in some time.  While some people thought a Scott Brown win would be good for the market, it appears to be doing the opposite.  The dollar is strong today on the Brown win, which is hitting stocks (especially commodity-related stocks) hard.  As shown below, the Materials sector is down 2.39% on the day.  The Health Care sector is down the least of the ten major sectors at -0.96%.  So while the Health Care sector has benefitted for the time being, the rest of the market is taking it on the chin.

After another leg higher to the 1,150 mark, the S&P 500 has been bouncing around that level for a couple of weeks now.  While the uptrend remains, could we be in store for another sideways trading range like we saw in November as the index struggled to get through 1,110?

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Comments

[Rational Market]

Actually, the sell-off is makes perfect sense. Tuesday's narrative that "gridlock is good" made no sense yesterday because equity investors are drunk on fiscal and monetary stimulus. The odds of a second fiscal stimulus package passing the Congress have been greatly reduced by the super-majority loss by the Dems. Gridlock is good for the market until the market has its hand out!