‘Epic chaos’ on Monday roiled markets dramatically; but notably primary uptrends in the S&P or any other major index, were NOT broken as of yet.
Much developed after the close, including ABC News recanting their story that ignited the fury (a ‘clarification’ as they called it); with a world of serious difference from what they alleged (whether more surfaces later or not who knows).
Plus you had the Senate version of the tax bill pass in the wee hours last night; which now goes to reconciliation with the House (and we’ll see what firestorms they try to wrestle with, if any; but more likely some resistance).
Overall this Congress wants something in front of the President this month, and more importantly (for the market), ideally effective January 1 of 2018; not 2019, as that matters.
Go back to the Reagan era ‘reform’ and you’ll see implementation was delayed a year; and the Nation went INTO A FULL RECESSION, while most businesses and investors awaited the benefits of passed legislation.
Daily action that occurred Friday and is suspect to start out on Monday, is outlined in the main video; so no need to review. We’ll let the video and our embedded chart comments tell the story; and for once a brief text report.
Enjoy the weekend and let’s see if the market can calm down after ideally an upward move on Monday and a requisite selling squall thereafter, prior to an new intraweek rally effort. All of that presupposes no more news and of course no instant revolt by Congressional members regarding what’s now the Reconciliation effort.
Overall market risk for renewed volatility is not really diminished. As I’ve said, this December would not be a simply calm holiday-oriented month. In sum, the charts and main video tell the story of this market, what’s likely on Monda; and the overnight news, including the escalation in Syria
