Futures were up about 0.5% last night after the debate as Romney exceeded quite low expectations, and Obama seemed passive as heck. Ironically the market has had one of its greatest runs under any president with Obama AND Romney wants to remove the market's prince in shining armor Bernanke – so the reaction is a bit funny. From some studies I have seen the market actually seems to do better under Democratic presidents the past few decades but then again the most earnest Federal Reserve policy was in the late 90s ahead of Y2K with Greenspan (Clinton) and now with the Bernank.
Anyhow, we spoke earlier this week of this triangle/wedge formation that was forming in the S&P 500. Yesterday the market actually hit both the top and low end of the triangle as it narrowed. Today we finally got the upside break and with vigor.
Holding Monday's highs would near 1460 would be a positive. Tomorrow's employment data will most likely tell us if this is a new breakout or simply a fakeout.
Things are not quite so cool down in the Russell 2000 – would certainly be a positive to see it wake up and join the party.
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