Stock indexes have pulled back from highs with stronger than expected construction and PMI data putting a damper on the markets' hopes that the Fed will taper their hawkish stance. These hopes were never really justified in the first place, so it was only a matter of time before reality set in. The S&P 500 inched above our level at 3909 and then fell back to support around 3848. We anticipate further support at 3792. The Kovach OBV has slumped so it is possible we may see some ranging here as stocks seek direction. If we can break out the next target is 3963.
Good idea, i agree on the stock market bearish bias!
Bill_Howell
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What about post-Congressonals? Does loss of a house or Senate imply more difficulty spending, and post-election is time for some tough decisions to work effects out before Presidential's in 2 years?
quantguy
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@Bill_Howell, stocks will usually rally after elections are over just because the uncertainty is removed. Unless there is something major that they voted on, stocks care a lot more about the Fed than congress