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US STOCKS: Equity Futures Weaker, Bessent Says Markets Corrections Are Healthy

US STOCKS
USEquitiesBulletMarketsFixed Income BulletsForeign Exchange BulletsNorth America

US equity futures have opened up weaker in the first part of Monday trade. Eminis were off around 0.50% in latest dealings, close to session lows. We were last near 5662/53 in index terms. Nasdaq futures are slightly weaker last down close to 0.55%. 

  • Friday's session delivered strong cash gains of over 2%, as the government averted a shutdown and we may have seen positive spill over from EU gains as well.
  • Still, US Tsy Secretary noted over the weekend that stock market corrections are healthy. See comments below:
  • “I’ve been in the investment business for 35 years, and I can tell you that corrections are healthy, they are normal,” Bessent said Sunday on NBC’s Meet The Press. “I‘m not worried about the markets. Over the long term, if we put good tax policy in place, deregulation and energy security, the markets will do great.” This BBG link has more details.
  • This suggests tolerance within the US administration for equity market corrections in response to policy shifts in the near.
  • In terms of Emini technicals, the trend condition in S&P E-Minis remains bearish and fresh cycle lows this week have reinforced current conditions. Moving average studies are in a bear-mode set-up highlighting a dominant downtrend Sights are on the next important support at 5499.25, the Sep 9 2024 low. Note that the short-term trend condition is oversold, a corrective bounce would allow this set-up to unwind. Firm resistance to watch is 5932.70, the 50-day EMA. Before that we have 5675.00/5822.79 High Mar 12 / 20-day EMA. 
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US equity futures have opened up weaker in the first part of Monday trade. Eminis were off around 0.50% in latest dealings, close to session lows. We were last near 5662/53 in index terms. Nasdaq futures are slightly weaker last down close to 0.55%. 

  • Friday's session delivered strong cash gains of over 2%, as the government averted a shutdown and we may have seen positive spill over from EU gains as well.
  • Still, US Tsy Secretary noted over the weekend that stock market corrections are healthy. See comments below:
  • “I’ve been in the investment business for 35 years, and I can tell you that corrections are healthy, they are normal,” Bessent said Sunday on NBC’s Meet The Press. “I‘m not worried about the markets. Over the long term, if we put good tax policy in place, deregulation and energy security, the markets will do great.” This BBG link has more details.
  • This suggests tolerance within the US administration for equity market corrections in response to policy shifts in the near.
  • In terms of Emini technicals, the trend condition in S&P E-Minis remains bearish and fresh cycle lows this week have reinforced current conditions. Moving average studies are in a bear-mode set-up highlighting a dominant downtrend Sights are on the next important support at 5499.25, the Sep 9 2024 low. Note that the short-term trend condition is oversold, a corrective bounce would allow this set-up to unwind. Firm resistance to watch is 5932.70, the 50-day EMA. Before that we have 5675.00/5822.79 High Mar 12 / 20-day EMA.