Originally published by AxiTrader
Stocks are lower in US night trade after the latest revelations in the press that former FBI director James Comey kept records of a meeting between himself and the president where Comey was asked to end the Flynn investigation.
It's the latest and possibly most damaging revelation for the president and comes on the heels of the admission overnight that he did share information with Russia at last week's meeting.
It's caused the storm in Washington over the possible ties between the administration and Russia to intensify and it's seen Jason Chaffetz, chairman of the House Committee On Oversight And Governance, to write to acting FBI director McCabe asking for copies of the internal memos Comey had written after the meetings.
The key question Chaffetz is seeking to inquire on is that these allegations in the press "raise questions as to whether the President attempted to influence or impede the FBI's investigation as it relates to Lt. Gen. Flynn".
This is a serious and very big deal folks and as a result, Dow Jones Industrial Average futures are currently down more than 100 points and the S&P 500 is down around 16 points.
Now I have no way of knowing the accuracy of the allegations or the impact of the memos. But I do know that it all adds up to the S&P 500 being on the cusp of what might be a big break lower if these allegations are proved.
Sure price has traded in a very narrow range lately and sure volatility is low. But when I look at the daily chart as I have written before I see the 2,375 level as critical (2,379 on the physical S&P tonignt).
Of course while it holds we move along with nothing to see. But should price break down and through 2,375 there is a chance of a volatility expansion and a drive lower.
2360/63 is minor support and then 2317/29, the April low, comes into the frame. And of course below there my long held expectation of a move back to 2258/60 is once again back in play.
Have a great day's trading.