Well today we have the first day of an extremely strong “end of rally” market signal. The SP500 broke its 50 days moving average. Now if tomorrow the market close under 1,670 (or DJ30 14,920)there is 80% chances we go and see at least 1,627 again -very fast.
The issue is as usual is the Tea Party in the US Congress. The very big issue is that the political position of the two factions is even farther apart than in August 2011 and that the Republican Party is not anymore a cohesive structure with Boher at ransom of of the Tea Party “Taliban”.
The “Tea Party” is a far right accolade that is against the “big business” (including the share market, logically) as they see the 2008 “Mother of all bailout” a bailout of the culprits of the crisis (big business and banks) and let down of the normal people.
As you can see it yourself, they have a point as it was exactly that. But you can say you cannot save the normal people unless you save the institutions that make our economy work. Unless you want to change the system entirely.
I found this beautifully written article on The Game Theory and Washington, well worth a read and explain very well that, as in a proper US Movie, the countdown to financial apocalypse is 17 October. Will the US President save us. Probably so!
http://blogs.reuters.com/anatole-kaletsky/2013/10/03/game-theory-and-americas-budget-battle/
investorpolitico 