• Selling seen in US stocks following the Wall Street open
  • US500 falls to test monthly low at 2566
  • House speaker Ryan coy on tax bill 

The US session has gotten off to a bad start with the US500 dropping around 10 points following the Wall Street open. The market has been trading lower ahead of the opening bell but the declines gathered pace and saw a fall back to the lowest levels seen this month at 2566. 

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 The US500 has been dropping today with the market falling almost 1% to test prior support at 2566. Source: xStation

One fundamental reason that could support the weakness is comments from House speaker Ryan regarding the tax bill. Mr. Ryan referred to the bill as “a work in progress” and it appears that the much promised reform remains far from completion. 

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 We noted yesterday that the US500 had broken below a rising trendline dating back to mid-August but the 2566 level is proving stubborn support. A break below there could see a larger move the downside but unless that occurs the market could well be just consolidating after the latest move higher.