Obama Is the Excuse
Perhaps Tuesday's bounce technically set up the market for a selloff, but there is little question that President Obama's re-election is being used Wednesday as an excuse to dump stocks. After the knee-jerk bounces on Tuesday, we didn't have a very attractive technical picture to begin with, so once the selling kicked in, it picked up momentum quickly.
Breadth is very poor, at about 750 gainers to 4,400 decliners. All major sectors are down, while bonds are flying. The bigger problem is that the S&P 500 is now breaching key technical support at recent lows around 1400. If the index takes out that level, it will be pretty clear sailing to the 200-day simple moving average at 1380. ...104 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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