I’d raised the prospect here yesterday of a market plunge brought on by the mounting uncertainties of the election, but I hadn’t imagined the selloff starting right on cue. That it did, with a 200-point drop in the Dow that commenced following a mild head-fake on the opening. The intraday lows occurred exactly where expected — in the case of the E-Mini S&Ps, three ticks above a 2090.25 target that we’d been using for weeks as a minimum downside target. The futures have bounced sharply since, but bulls will need to keep the rally going for at least another day or two to get some help from short-covering bears. Alternatively, if the broad averages were to take out Tuesday’s lows just a day after they were recorded, that would be very bearish indeed.
