Back to the markets. The Dow Jones Industrial Average (DJIA) broke below its November low, so is now searching for new support. Not all averages have followed suit, but there is severe testing to see if the previous lows hold as support.
The sad, sad uncertainty is that no one in the markets is able to offer much of any clues about the coming economic landscape. Regardless of market swings, stock prices are ultimately driven by earnings. Consequently, analysts inside and outside specific corporations issue earnings guidelines and predictions. In this uncertain environment, some big bellwethers - Microsoft & others - have suspended issuing earnings guidance because they have no idea how this economy and political responses will affect them. As a result, investors and traders cannot estimate fair value and future value.
This administration and Congress have made sure that this is a political, not market, recovery. In fact, they eschew the messages that the markets are giving them. So expect a lot of turbulence and uncertainty in the markets until the uncertainty clears. Oh, and don't expect any clarity to emerge from the President's great orations. His speeches got him elected, but now he has to provide substance. That does not appear to be his strong point.
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