Everyone knows that the markets have been pricing in divided government. Market watchers see a Clinton win with the House staying Republican.
The S&P 500 dropped 3 percent in nine straight days of losses in the last two weeks as the presidential election polls narrowed, and on Monday regained more than half the losses. It comes after FBI Director James Comey said a review of new Clinton-related emails did not change the agency's July decision not to recommend charges related to her handling of classified information.
Is any rally on a Clinton victory a doomed rally? At the end of last week, Nomura implied that it was.
"[I]t's completely plausible that if Clinton wins, any sort of relief rally in equities is faded as a lot of technical damage on the charts has happened and because markets also might be coming around to the idea that her administration could be bogged down by the House and the overall environment can remain contentious and therefore volatile," Nomura said.
Roberto Friedlander at Seaport Global argued that this "Comey Rally" was "similar to the knee-jerk Brexit reversal where we saw a plunge, followed by a failed rally."
"Don't be surprised to see this Comey Rally fade late today," he added.
"Fade the Clinton rally" is having its moment.