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Why Wall Street has not priced in the midterm elections

What Election Day means for stocks

The midterm elections, which Wall Street has largely ignored, could pack some surprises for markets Tuesday.

That however, would be against the conventional view—which is that the election is largely inconsequential, and that the 2016 presidential election is far more important. The entire House of Representatives and 36 Senate seats are on the ballot.

This year the Senate is in play, with Republicans hoping to garner a majority of seats but unlikely to gain the supermajority of 60 percent that would allow them to override a variety of procedural hurdles and run with legislation opposed by Democrats.

But it would give Republicans control of both houses and with a Democratic president, that is seen by some on Wall Street as a recipe for gridlock—which in itself is seen as a plus for markets. Strategists say that some investors see that type of situation as similar to the current dysfunction in Congress, and that is one reason why the market has not yet fully priced in the potential for change.

Read MoreHere's a bold prediction about Tuesday's Senate battle

"I have never seen such lack of attention on the part of investors toward a U.S. election," said Dan Clifton, head of political strategy at Strategas. "I think (Republican Senate majority) is the consensus in peoples' minds. I just don't think anyone's put money to work because of it."