WHY SO CALM?
By Charles Payne, CEO & Principal Analyst
2/22/2010 1:28:48 PM Eastern Time
Okay the gauntlet has been laid down and the Republicans will have to respond, but I don't think that's the source of the market's anxiety today. There is that feeling, like the calm before the storm. In the northeast, we know we'll pay a heavy price for a nice weekend with four days of nasty rain/snow and other weather conditions that prove global warming (I couldn't resist). In the stock market, we have to wonder if the revival of healthcare reform is just the tip of the iceberg (there I go again), and the gathering storm means more draconian versions of cap and trade and financial regulatory reform.
The animals aren't heading for the hills but the animal spirits of investors have been in hibernation all session.
After last week I expected some apprehension early in the week but there will be news that could spark the market in one direction or the other. In the meantime, the S&P 500 is at a key resistance point and on the verge of a major breakout. As the index lifts from 1,100 it should gather steam and rally to 1,140 quickly.