The market is taking it on the chin ahead of the Senate releasing its official version of tax reform.  The fact the House is still working on mark-ups is worrisome, but now investors are going to have to digest competing versions, which are sure to have marked differences.

The issue eating at Wall Street the most is a potenital delay in the corporate tax cut.   Sources say this could be delayed one to two years.  Wall Street wasn’t prepared for any delays, and certainly, two years would be a disaster. 

Right now, I think the market is sending Washington, D.C. a message.  There are serious stock market gains out there that don’t have to be held, even for those folks that were smart enough to buy and ride out the rally to this point, and they understand the impact of shifting the bias to the downside if they sell too much.

I suspect a final deal includes removal of SALT deductions and a 39% tax bracket, but keeps corporate tax cuts in place out the gate.  

The markets are down about 1% on tax reform fears.  Decliners are firmly in control leading advancers 2053/883 on the NYSE and 1872/850 on the Nasdaq.

Let’s hold off this afternoon.