Finally, the market realizes that it was the patsy all along. This is what a real cliff looks like:
Of course, none of this news to any of our readers. From November 13:
Once again, it will be up to the market, just like last August, just like October of 2008, to implode and to shock Congress into awakening and coming up with a compromise of sorts.
But please listen to all those "expert" political journalists, reporters and pundits, who said all is well and not to worry about anything. After all they had pretty slideshows and lots of clickbait to make you believe they know stuff.
The good news: ES can only drop 5%, or limit down, on Sunday night when the market gets more of the same.
The better news: SPY is open late tonight, long after ES closes.
And it is different this time (from the debt ceiling debate of last year) as investorsd have been herded into risk assets en masse by an over-zealous Fed head...
Where it likely is not at all be different, is how much further the market will have to plunge to "extract" a deal from Congress... roughly another 15-20% lower. Which with a near record margin debt on the NYSE will become quite a sight to see.