Wall Street bulls will pounce once the long-running US presidential stalemate is settled, but they may have to sit it out this holiday-shortened week. "If there's no resolution, Monday and Tuesday will be under that cloud," said Mr Larry Wachtel of Prudential Securities, who expects a rally once the question of who will become America's next president is put to rest.
"The market has switched from the Three Es - Energy, the Euro and Earnings - to the Three Fs - Forecasts regarding earnings, the Federal Reserve and the Florida elections debacle," according to Mr Peter Cardillo, director of research, Westfalia Investments.
The elections picture may change soon. But even if there is a knee-jerk move higher when the question is settled, the jury is still out whether that rally will be sustainable.
Wall Street is already looking ahead of the curve to a time when the Fed will stop raising interest rates or even cut them. That would bode well for the market, as lower rates cut companies' borrowing costs and stocks become more attractive as an investment.
The rhythm of trade will be coloured by the US Thanksgiving holiday on Thursday when the market closes, traders said, warning of more market swings on a thinly-staffed Street as many traders will take a long holiday starting on Wednesday.
