I’ve written that the stock market has believed that Clinton would win the election since late Springtime. In fact, I predicted a 500-point drop in the Dow the next day, if Trump pulled-off an unexpected win. During that time (except for the Brexit Bear in late June), the market has just bumped along . . . until recently.
With the latest DOJ surprise and the narrowing polls, the stock market is questioning the belief that Clinton will win, which explains the 7-straight days of small losses. Confidence is seeping out of the market. You can see the sharp downturn in this chart of the gray line.