$SPY spx is dropping because of the rate hike...this has been pricing itself in for the past 1.5 years
Great points...Many people still had fresh memories of Oct 2014 and the "v" reversal with Bullard's comments, which propelled us to those May 2015 highs...The rally in Oct 2015 was also one for the record books and the tail end of it was fueled by more dovish commentary by Abe and Draghi...So even though many sectors were breaking down and were not confirming what was taking place in the headline indicies, there was a great deal of skepticism that this market could actually correct (plus there were numerous rallies off of the pullbacks - mid Nov, early Dec, late Dec)...