US stock index futures are firmer in early trade, bouncing off last night’s closing lows. This has helped to steady nerves after yesterday’s sharp sell-off which led to the biggest downside move in the Dow and S&P since last September.
Trump’s woes persist, and these may continue to unnerve investors to some extent, especially as they come on top of concerns that the US Federal Reserve is still set to tighten monetary policy further even as the strength of the US economic recovery looks uncertain.
But the bulls should take some comfort from the technical set-up on the Dow and the S&P500. Last night’s sell-off meant that both indices have now filled the trading gaps which opened up in the aftermath of the first round vote in the French presidential election. This suggests that there’s the potential for a swift bounce-back. However, many traders will now be wondering if the highs are in for the major indices.
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