Technology led today’s robust rally as the dollar continued to weaken. Financials, especially banks, remained strong the first three days of last week then fell to profit-taking on the final two days, ending down a little more than -0.5% for the week. Today, that sector regained all of that loss and advanced an extra 25 basis points to reach near multi-year highs, although it is still more than 50% off its early 2007 high.
Santa Claus is trying his hardest to keep spirits bright among stock investors. But the President and the House are not playing nice and just might find a lump of coal in their stockings. Neither appears willing to give an inch, so some observers predict that we will indeed go over the fiscal cliff, at least until mid-January.