The market sold off its HOS [971 SP 500] down to the [920 SP 500] levels putting the DOW down to a loss of 75pts, but off an intraday high of +300pts.
This means that investors/traders are doing what they do in a bear market recession of "sell the rallies".
The bottom has probably not be seen yet, and it will drift slowly lower as several things start to indicate the future of the market action:
Companies are beginning to end their contribution to employees' 401K plans.
Credit card companies are beginning to lower customer's credit limits and raise rates. This will cause the consumer to pull-back and make Christmas retail period this year very dismal.
The Federal Reserve is lowering interest rates so savers are going to lose money (interest) on their deposits and this tends to reduce the amount of savings both for retirement and emergency times.
Car leasing companies are not offering car loans
Mortgages are getting much tougher to get and so all the other ancillary industries of home buying are going to suffer as well.
Next administration likely to be BHO has said that he favors a withdrawal from IRA and 401Ks without penalty and this would cause another wave of redemptions of stocks.
If BHO is elected, he has said that he would raise taxes on all kinds of entities from dividends, capital gains, and corporations. Again, all these have chilling impacts on the stock markets.
All these plus more and more pressure on the US stock markets keeping their rallies from really taking hold as companies begin to show lower and lower earnings as the consumer which has been 2/3 of this economy begins to really pull-back after the election.
It's just the normal cycle of capitalism, but its going to exacerbated by the BHO's election and with his SMDC's propensity to spend, spend, spend. The deficit is going to be over $1 Trillion USD next year. I wonder how the BHO and SMDC are going to blame it on anyone then?
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