07 November 2012

SP 500 and NDX Futures Daily Charts - The Morning After

As you may recall, I said some time ago that if Obama was re-elected the equity markets would sell off.

That was almost a no brainer, if one looks at the historical market action after a win by an incumbent. But more importantly, the implications for tax selling this year with the reasonable expectations of higher taxes next year.

So what next? We may see a choppy, sideways market, as some things are uncertain, but again, the fundamentals of the markets are foul. The economic recovery is weak, because demand and the median wage are weak.

There will be no sustained recovery until there is genuine reform.