Them's supposedly in the know were saying earlier in the week that the stock market
had already discounted a topple over the fiscal cliff, with the idea being that official
Washington would quickly patch everything up in very early Jan., 2013. As the chart
link below shows, not everyone appears to have received this meassage. Not only
was the SPX weak into the close on Fri., but the futures market kept right on tumbling
into early evening. SPX Future
The sell off took out short term support, knocked off the better part of the rally gain from
Nov. and left the SPX future at levels seen back in late Mar. of this year.
Perhaps this pounding of the market will impress the Congress enough to take some action
to curb apparent overdue and mounting anxiety about the fiscal cliff. At any rate, the boyz
in the capitol are running out of places to hide.
The schedule in the Senate now calls for a vote on cliff legislation tomorrow, Sun. 12/30.
The vote could reflect a deal betweern the two Senate caucuses or failing that, perhaps
an up or down vote on a heavily streamlined Obama proposal. If a deal is announced,
it may come before the SPX future resumes trading. Check your screens.
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