From Gold Scents:
The stock market has known all along that the fiscal-cliff issue was going to be pushed out to the last minute. This is just how Washington works. Nothing is ever settled until everybody gets all of the pork needed to buy their vote.
The correction today is nothing more than a short-term breather before the market makes a final push to test the all-time highs, probably by the first week in January.
I'm guessing we will get some kind of stopgap measure, or extension of the deadline next week that will trigger another explosive move up to test those September highs.
At that point, the market will find some excuse to drift down into a daily cycle low around the middle of January.
Once a deal is struck, the daily cycle correction will end and the market should explode to new highs, maybe big, new highs...
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