Dow Drops 67 Points Because These Issues Won't Go Away

6:46 a.m. Stocks look set to pick up on Monday where they left off on Friday -with more selling.

The good news is that the losses are, for the moment contained. S&P 500 futures have fallen 0.3%, while Dow Jones Industrial Average futures have dropped 67 points, or 0.3%, and Nasdaq Composite futures have declined 0.2%.

And it is the usual headlines that are “responsible” for the morning weakness: More tension between the U.S. and China after China summoned the U.S. ambassador following the arrest of Huawei’s CFO; more concerns about what the Fed will or will not do at its December FOMC meeting ; and general fears about whether a bear market has already begun.

Still, we believe the market narrative is being driven by technicals, not data or events. The S&P 500’s low following October’s peak is around 2630, and if that holds, investors will likely find reasons to be bullish. If it breaks, the next level is around 2600, or where the S&P 500 found support after February’s correction. If that breaks, expect the narrative investors spin to get a whole lot worse.

Write to Ben Levisohn at

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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