E-mini S&P 500 Futures (December): Settled at 3231.25, down 68.00
E-mini Nasdaq-100 Futures (December): Settled at 10,829, down 320.50
The S&P 500 index covered the 3316 settlement from Friday just before yesterday’s opening bell and the tape has been under pressure ever since. U.S. benchmarks were all lower at the onset of U.S. trading hours and ahead of another deluge of Fed speak.
A narrative of ours is that “markets don’t like uncertainty.” In fact, we’re very bullish equity markets from these levels after the election, because regardless who wins there is either some certainty or less uncertainty coupled with accommodative Federal Reserve policy. Yesterday, President Trump said, “We are going to see what happens,” when asked if he will commit to a peaceful transfer of power after the election. While this is a common phrased used by the President, he is egging media to construe such however they see fit. Coupled with his push to find a Supreme Court Justice replacement, there’s now added uncertainty and markets are acting accordingly.
Federal Reserve Chair Jerome Powell and U.S. Treasury Secretary Mnuchin began their third and last day of Congressional testimony at 9:00 a.m. CT. Weekly Jobless Claims data underwhelmed. There is a 7-year U.S. Treasury Note auction at noon CT, Chicago Fed President Evans speaks then, and New York Fed President Williams follows at 1:00 p.m. CT among others.
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