Cliff Diving – Day 19

Image_Cliff DiveNot much here.

The markets continue to slowly grind higher on strong seasonals.   The S&P500 (SPY) gained 0.34 percent and the Russell was up another 0.16%.   Utilities were strong, financials up 0.32 percent, and the VIX basically flat.

Employment number tomorrow.   The 50-day remains resistance for the S&P500.

What would a real fiscal cliff panic look like?

Stocks down hard;  Russell 2000 down harder;  consumer discretionary down hard;  gold up;  dollar down;  VIX spiking;  and defense stocks in the tank.

Bonds?   Tough to extract a clear signal with the Fed’s financial repression, but,  initially,  the cowboys would most likely be in buying on recession fears and increased worries about going over the cliff.

Dec6_FCM(click here if video and table are not observable)

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