Trump

A Flat Pre-FED Wall Street Open

Posted Thursday, November 8, 2018 by
Shain Vernier • 2 min read

The U.S. indices have opened trade flat ahead of today’s FED Interest Rate Statement. Both the DJIA and S&P 500 are near scratch for the first hour of trade since the Wall Street open. Thus far, it appears traders are a bit hungover from the politically-driven market environment that this week has brought.

During the Wednesday post-election session, stocks roared to life posting trend days up in each of the U.S. indices. This morning has been a different story. Yesterday’s fiery Presidential press conference and eventual resignation of U.S. Attorney General Sessions may have scared short-term equities bulls away from the trough.

A Sluggish Wall Street Open

Tight ranges and modest action is the story for today’s early U.S. session. The December E-mini DOW futures contract is posting light volume, trading just off of Wednesday’s highs.

December E-mini DOW Futures (YM), Daily Chart
December E-mini DOW Futures (YM), Daily Chart

Overview: For the time being, the DJIA and December E-mini DOW are in a technical no man’s land. The daily trend is up, with all-time highs once again coming into view.

At the moment, it appears the elimination of political uncertainty on Wall Street may be short-lived. Wednesday brought new questions with the removal of Attorney General Sessions and media buzz over a slew of coming Presidential investigations. While the Midterms may be over, there is still plenty of meat on the bone for the markets to digest.

So, are we heading into a period of intense legislative conflict led by the newly-Democratic House of Representatives? There is no doubt that pending investigations will eventually dominate the headlines out of the Trump White House. However, for now, expect relative calm in U.S. stocks for the next month to six-week period. Remember, the new members of the House will not be seated until January. At least for the next several weeks, a large correction in the U.S. indices will not be attributable to fears over pending investigation and a split U.S. government.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Shain Vernier is our US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
Related Articles
eToro announces a significant cut in spreads on cryptoassets to increase awareness of the potential of crypto and blockchain more broadly
SPONSORED
Comments

Leave a Reply

avatar
  Subscribe  
Notify of