Get ready for one of the most exciting US trading session of the year

Did you follow along with yesterday's action? The firm resistance and sudden melt-off looked rather decisive, if you ask me. A generally negative pall came over the broad equities space late in the day. A boost for the healthcare sector failed to push the S&P 500 past the 2441 level. Five times, the index tried to get past that spot. Five times, the index failed, and then proceeded to sell off fairly hard into the closing bell. Still, the index closed above the downward slope that had been in place since Tuesday morning. Perhaps yesterday's action, or lack thereof, will have little bearing on today's marketplace. Enter the Russell Reconstitution, or what we on the trading floor of the New York Stock Exchange have always referred to as the Russell Rebal.

Today will certainly be one of the heaviest trading days, if not the heaviest of the entire year. An estimated $3.8 trillion in assets track the Russell indices; 43 names will head from the Russell 1000 into the 2000; 31 companies will go the other way. Just within the 2000, there will be 186 additions and 107 deletions. There will also be 10 additions to the 1000. Between $1.5 billion and $1.8 billion are expected to flow into both the energy and tech sectors, while financials should see outflows of more than $2.6 billion.

For that reason, remain cautious in the trade of US indices and stocks. We expect increased volatility in the technology and, above all, the financial sector, as investors are still awaiting the second round of stress tests of the major banks in the country.

Here are the more important economic news during the US Stock Exchange session that will further influence markets:

16:45 - USA - PMI in manufacturing
16:45 - USA - PMI in Services
17:00 - USA - Sales of new homes
18:15 - USA - Speech by James Bullard from FOMC
19:40 - USA - Speech of Loretta Mester from FOMC
20:00 - USA - Number of Oil Platforms by Baker Hughes

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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