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U.S. Stocks Falter In Shortened Session

Posted Friday, November 29, 2019 by
Shain Vernier • 2 min read

U.S. stocks resumed trade this morning, with the early action coming in decisively negative. Just ahead of the early close, the DJIA DOW (-91), S&P 500 SPX (-10), and NASDAQ (-32) are firmly in the red amid light participation. It appears that most equities players have chosen to extend the Thanksgiving holiday and grab some Black Friday deals instead of assuming fresh risk.

Today’s U.S. economic calendar was vacant, featuring no metrics or reports. About the only item worthy of note will come later today in the form of China’s NBS Manufacturing and Non-Manufacturing PMI (Nov.). In reality, these numbers aren’t too important to U.S. stocks. Nonetheless, they will be scrutinized by market analysts attempting to handicap U.S./China trade. If these figures miss their marks dramatically, we may see more U.S./China trade war rhetoric hit the newswires this weekend.

U.S. Stocks Retreat Ahead Of Weekend Break

The weekly chart below is a look at the December E-mini S&P 500 as of Wednesday’s close. As you can see, valuations are in rarefied air and very near all-time highs. 

stocks
December E-mini S&P 500 Futures (ES), Daily Chart

Overview: Today’s action in the S&P 500 has price retreating from the 3150.00 psyche level. Is the retracement poised to deepen as December gets underway?

The answer to that question remains to be seen. However, here is what we do know about the markets moving into December:

  • Monday marks the first trading day of December. Typically, we see a flurry of activity in the stock, cryptocurrency, commodity, and currency markets at the onset of a new month.
  • There is no definite timetable for “Phase 1” of a comprehensive U.S./China trade deal being signed.
  • Trump impeachment proceedings remain in full effect. 
  • Temporary funding for the U.S. government expires on 20 December. This date is very likely to bring another government shutdown.

Ultimately, December is going to be a very active month on the capital markets. And, the action is likely to begin in earnest on Monday, 2 December. If you are an active stocks trader, be ready for volatility across the board following this Monday’s opening bell.

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