Trader Explains the Election Outcome That Would Have the Market Testing New Highs

Wednesday will be a brand new day for Wall Street, as the results of the election will determine if stocks rally or sell off. NYSE floor trader Kenny Polcari, a director at O'Neil Securities, says the market would cheer the continuation of divided government, should Hillary Clinton win and Congress remain in Republican control. "I think that's actually the best combination. I think you see the market then rally right up and through 2147, which is resistance, and then go on to test the yearly highs at 2190, within in a couple days," explained Polcari, who was referring to the S&P 500 index. "If Trump wins and retains Republican control, I think the market will view that as the worst possible outcome and it would sell off very hard. It would essentially be our Brexit moment, I wouldn't be surprised to see the market trade right back down to 2000. It would be about four or five percent from where we are here," he said. Polcari added that even if there is a selloff, the market would then stabilize and trend higher. 

What does the new administration mean for Wall Street? Jim Cramer's first reaction to the election is live on TheStreet's Facebook page tomorrow morning at 8am ET. He joins our team of reporters along with experts and analysts tracking the markets with us.