A Flat Pre-FED Wall Street Open
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.
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.