U.S. equity markets are in a holding pattern today as investors monitor the tax-reform bill’s motions and paces. The bill has been passed by the House and Senate, but there appear to be a slew of minor bugs that require revisions. When this happens, the House is required to vote again on the bill. The markets will continue to operate in response to economic data and fundamental levels, but a main concern for participants going into January will focus on tax-reform impacts. Companies will be categorized into winners and losers due to the tax cuts and tertiary provisions within the bill in the start of 2018.
The recent rallies spurred by the Trump bump the tax-reform hype may have a dampening effect on the annual ‘Santa rally’. Going into the holidays this weekend, we may see a less pronounced boost as valuations may be already priced in.
On the economic front- November’s existing-home sales figures rose above expectations as reported by the National Association of Realtors. Sales saw a 5.81 million climb for their seasonally adjusted annual rate.
At the time of publication, the DJIA is up 0.07%, or 18.03 points, at 24,773. The S&P 500 is trading at 2,682- down 0.02% from the open. The Nasdaq-100 is down 0.13% at 6,955.
Using the ^GSPC symbol to analyze the S&P 500, our 10-day prediction window shows overall negative vector signals. Today’s negative vector figure of +0.33% moves to +0.67% within three trading sessions. Today’s predicted support and resistance is 2,673.99 (± 5.33) and 2,682.70 (± 5.34), respectively. The predicted close today is 2,675.41. Prediction data is uploaded after market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session. CONTINUE>>>>>