Wall Street Casts Its Vote: 'The Market Is Going Down'

With a wary eye on Europe's continuing debt drama, investors also reacted to warnings, first from Fitch, then Moody's that the rating agencies stand ready to cut the U.S. triple A credit rating if responsible fiscal actions are not taken. Standard and Poor's already took action on the rating in 2011.

"The market is going down. The market does not want another four years of Obama. It does not want these tax hikes on a fragile economy," said Peter Boockvar, Miller Tabak strategist. "We have an economy that's barely staying above recession. Europe's problems are deepening. Now we have the prospect of higher taxes."

Boockvar pointed out that the Treasury's auction of $24 billion in 10-year notes at 1 pm Wednesday was surprisingly weak. The yield was 1.675 percent, and the bid to cover, at 2.59, was below the 12-month average.

"I can only speculate. We know a dovish Fed will be with us for another four years, with all the money printing and dollar debasement it brings. It was a squishy auction," he said.

The stock market selloff, with the Dow down more than 2 percent, was the second worst post election sell off since the late 1940s. The worst was in 2008, when Obama was first elected and the financial crisis was in full swing. That day, the Dow declined 5 percent.

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