What Is The "Pent-Up" Market Upside In Case Of A Washington "All-Clear"

The S&P 500's 32 point rally off the lows yesterday has some excited that the "All-Clear" will be signaled soon from Washington and traders can go back their business of BTFATH. In an effort to provide guidance for just what that would mean, and assuming Yellen/Bernanke (absent any jobs data to guide their hand from the "buy" button to the "strong buy" button) stays the course, the Fed balance-sheet flow suggests an End-October S&P 500 Target of 1,800... and all driven by the optimistic expansion of multiples.

 

Because it's all about the fundamentals...

 

Chart: Bloomberg