The consensus view seems to be that the market will rally into the November midterm elections, betting on Republicans getting elected (Gallup: GOP Shows Strongest Positioning Yet in 2010 Vote Test). Does it even matter what Congress does at this point? I thought the market was supposed to rally on reflationary policies, not without them. I guess we'll have to see what the big money HFT trading algorithms decide to do, collectively.
There are still technical risks for the market though in my opinion, which could come into play between now and the end of the year (based on the chart). See post $SPY Trend Update; Be Aware Of Weekly, Monthly Moving Averages and Elliott Wave provided a chart of the head and shoulders pattern. I've come to accept the fact that the perception of value, price multiples and technical trends can change at any time, that's why you f'n hedge. The video below is courtesy of CNBC. Oh, if you want to know what a double dip recession is see this cartoon at The Big Picture blog.