Market volatility continues, with the Dow gapping down under 10,000 to start the day today before recovering nicely by the close. Most of the major indexes are still below their 200-day moving averages, but interestingly, the Nasdaq 100 (QQQQ) and the Russell 2000 (IWM) actually closed above theirs. I see this as bullish.
We will definitely face more of the same this week as we have the past week. There seems to be some progress between the President and Congress, but it’s anybody’s guess what combination of increased revenue and reduced expenses will survive political battle. It will probably be some combination of increased taxes on the top 2% of our wealthiest citizens and some reduction in medical spending. Who knows what else? More on that later.