S&P is back in the 1419 to 1489 Trap
Back on September 7th we outlined the parameters of the trap area. The last minute, actually after the last minute by a day, avoidance of the Fiscal Cliff is making the market buoyant again and is pushing the market back into the trap area.
It is important how success is measured now. Keep in mind the goal in Washington is to deal with government deficits. First government revenues have been increased a bit, and next government expenditures will be reduced a bit. In any case, reduced deficits mean slower economic growth in the micro sense. So, a higher Macro S&P will not be the measure to follow.
Stay tuned over the coming period.