Election Relief

Barring a very low probability scenario of an undecided winner on Wednesday, the market should have a relief rally on the removal of uncertainty.  With a Romney win, I expect a big squeeze in stocks for the week.  With a more likely Obama win, I expect a healthy 2-3 day rally which could have us challenging the 1435-1440 level.  Any kind of relief rally should be brief because the real worry on most investor's minds is the fiscal cliff, and that will be the talk of the Street for weeks to come, putting a drag on the market even during this seasonal strong period.