Despite the drama of the presidential election and debate, there are only two issues that matter to the market right now. The first is the possibility of a fiscal stimulus deal and the second is the ability of the indices to overcome technical resistance and produce upside follow-through.
Nancy Pelosi announced on Wednesday that a vote would be held in the House on the Democrats’ fiscal stimulus bill. This would have effectively killed any deal as there is no way that bill would pass in the Senate. Later in the day, the vote was canceled and renewed negotiations began, which is giving the market some hope of a breakthrough, though there are substantial obstacles.
The market is going to continue to dance around on any news or rumor of a stimulus bill, but what adds an element of uncertainty to the situation is that the indices are sitting in a