Daily news on the negotiations will drive levels.
After some kind of deal happens we still have Obamacare implementation and all kinds of goodies like potential new EPA regs to drive the market down.
The fiscal cliff reason for market drop is the media’s narrative. The real reason the market is tanking is the re-election of 0bama. Business knows its screwed for four years. The media whores want people to think it’s the fiscal cliff to get the GOP House to cave to 0bama, Reid & Pelosi’s demands to significantly hike taxes while doing NOTHING about spending.
The media already has the two narratives ready to go:
“GOP House refuses to compromise; pushes America over fiscal cliff.”
“GOP House passes massive tax increases; middle class crushed.”
The “fiscal cliff” narrative on the stock market is meant to drive the next one about blaming the House for whichever disaster we get. It’s all part of the strategy of finishing the job in 2014 by turning the House democrat.