The Markets Were Exhausted Today

The US equities markets opened weaker, but bounced back significantly. While we are far from recouping the losses from Monday, there seems to be a clear exhaustion of selling pressure ahead of next week’s FOMC meeting. The key takeaway here is that although trade is a major concern, the situation is not clear. We know the general lines on which the trade dispute is developing, but there is a lot of room for further developments which might take things in an entirely different direction. For now, we can expect the markets to remain in the range between the all-time high of earlier this year and the low of February. This is a very wide range, but without clearly bullish or bearish news the markets are unlikely to depart far outside of this range in the near-term. Here’s what to expect.