In all fairness, the Obama reelection, though providing most of the catalyst for the dive in equities, was not the only issue the market was concerned about. Europe continues to fester with political tensions and the probability of a Greek exit from the Euro zone growing again,Spanish bond yields creeping up for a third week in a row and terrible economic numbers coming out of Germany and France.
But the immediate main issue for the market was the prospect of another four years of an Obama administration and a Republican congress with the fear that political gridlock will continue while the country sprints over the fiscal cliff. And the President did little to encourage Mr. Market in his news conference on Friday afternoon when he arrogantly drew a line in the sand by proclaiming he would veto any legislation that included tax cuts for those making over $250,000.00/yr. The market as measured by the S&P dropped nine points in about five minutes after he made those remarks.
Here's where we are in the S&P: