Sentiment Shift

The well has been poisoned.  There is no turning back now.  Sentiment has made a U turn and investors are not going to jump back in until January earnings are over.  Even with a deal, the market was poised to go lower due to the expectations for weak earnings coming up in January and the extent of the rally over the past month.  I am sure the longs are still expecting a deal, and expecting the deal to ramp up the market, but now the deal will likely be pro-Democrat, which will mean higher taxes than before Boehner's gambit failed.  The market doesn't go up on any deal, only goes up on a deal that is market friendly.  Now that the Republicans blew it, expect a more tax heavy deal than before.