What is widely perceived as good news, QE2, and the midterm elections, a guaranteed Republican takeover of the House, we have selling. Yes, it is pre-selling the good news, making it that much harder to game the actual news announcement. They don't make it easy anymore. The fools who like to buy good news and sell bad news are fewer and fewer.
I don't see a sustained sell catalyst because I am not in the camp that believes the economy of the developed world goes back into a recession. We are already in one, and its probably gonna be much of the same over the next several months. And if they can't rehash the same old Euro crisis story, than the bears have very little ammo to make this market go much lower other than overextension of the upside and overexuberance. I see no such signs at the moment.
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There may be a catalyst for a post-election sell off with a Republican House victory. The Democrats have a lame duck session where they can pass virtually anything they want with no accountability. (Lame duck sessions is the reason why I oppose term limits for Congress.)
Another bear becoming a bull ... hehe. Selloff is coming soon !
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