While the stock market welcomed the temporary resolution of the fiscal cliff, it does not seem too concerned about the looming debt crisis, at least according to the VIX.
As of Tuesday’s close, the S&P 500 and NASDAQ composite have recovered over 3 percent and 3.5 percent, respectively, from the post-election low set on Friday last week.
While oversold conditions don't mean the indexes can’t go lower, we looked at broader market sentiment to see if there will be any temporary relief for the markets from recent downslide.
The post-election selloff comes on the heels of downbeat comments from ECB President Mario Draghi regarding Germany’s outlook and the uncertainty of the "fiscal cliff" in the U.S.
Since the Dow industrials have rallied 11 percent so far this year, while the transports are up only 2.6 percent, the charts seem to indicate that the transports may be primed for a big upturn.
Alcoa, which kicks off the third-quarter earnings season on Tuesday, is often considered a bellwether stock. But do the quarterly results from the Dow 30 component actually set the tone for the markets?