It’s been an intriguing session, which saw stocks open higher in response to a talk given by former NY Fed President Bill Dudley who explained the infamous dot plot.

Of all the FOMC members, the right group is still amenable to further interest rate cuts.

• Five wanted to keep rates unchanged
• Five wanted a quarter point cut
• Seven wanted 50 basis point cut

Chairman Powell and several voting governors are in the latter group, which means we can expect more interest rate cuts.

Early strength faded quickly, as Technology led the market lower and continues to face challenges of whether valuations are justified, and rallies can be sustained.  Coming into the session, that question was centered on Netflix (NFLX) and names like Roku (ROKU), but it also includes momentum darlings.

The financial media is trying to connect dots to President Trump’s comments at the United Nations is a stretch I’m not buying, and even increased impeachment talks were known as investors bid stocks higher at the start of trading.

The hit to momentum darlings is impacting:

• Financials
• Communication Services
• Consumer Discretionary

By the way, energy is lower on crude oil, which is not the kind of reaction one would expect if the market saw increased likelihood of military action in the Middle East.

This morning, I mentioned new highs beget new highs, but until the key resistance is taken out on a closing basis, continued failure to breakout adds more pressure to sell.   None of this reflects fundamentals, which we’ll get a chance to exam as we enter the earnings’ release period for third quarter financials.

Until then, look for the media to focus on impeachment and other issues.  On that note, we’ll know more as reports are that Joe Biden will call for impeachment and Pelosi will meet on the issue after the close.

Speaking of politics, and the market, there is no doubt the Warren Juggernaut is hurting sectors of the market, as she has now overtaken Joe Biden in a New Hampshire poll 27% to 25%.

Health insurers and drug stocks are feeling the pressure.