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Markets Fade Off Vaccine-Induced Highs

EQUITIES
  • Equity markets faded off their highs into the Wednesday close, with the cash S&P500 dipping just below unchanged following the London close. Stock futures enjoyed an initial boost from a Pfizer/BioNTech press release which talked up the likelihood of a three jab regime protecting effectively against the new omicron variant. Sentiment faded from there, with weight in consumer staples and financials dragging headline indices across the US morning.
  • Bearish pressure in the S&P E-minis has eased significantly this week and the contract rallied sharply higher Tuesday. Futures are once again back above the 50-day EMA, at 4569.94 today. This average highlights a pivot level and a stronger recovery through it would improve conditions for bulls. The focus is on 4717.00 next, the Nov 26 high ahead of the all-time high of 4740.50. Key support and the bear trigger is at 4492.00, the Dec 3 low.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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