Yesterday the market thawed on optimism about a deal in Washington but policymakers remain stubborn.
In the early US afternoon look for signs of negotiation and compromise for a potential rebound. I don’t see that as likely and technically, stocks look soft here and would look worse on a close below the 55-day moving average. Yesterday’s gains were wiped out far too easily.
Watch for stocks and USD/JPY to track each other closely after Europe clocks off.
