The markets continue to slowly grind higher on strong seasonals. The S&P500 (SPY) gained 0.34 percent and the Russell was up another 0.16%. Utilities were strong, financials up 0.32 percent, and the VIX basically flat.
Employment number tomorrow. The 50-day remains resistance for the S&P500.
What would a real fiscal cliff panic look like?
Stocks down hard; Russell 2000 down harder; consumer discretionary down hard; gold up; dollar down; VIX spiking; and defense stocks in the tank.
Bonds? Tough to extract a clear signal with the Fed’s financial repression, but, initially, the cowboys would most likely be in buying on recession fears and increased worries about going over the cliff.
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