Despite the two major bearish factors— the bill not being passed and the rate hike— why hasn’t the market fallen sharply? First, the market has already priced it in. Put bluntly, after the first two surges up, it immediately dropped back again, which means the market was pre-discounting the impact of the bad news in advance. Second, as for these two bearish factors, the market can basically predict what the situation will be; there is no kind of suddenness, and therefore it won’t trigger panic!

Now it’s as if the bearish side’s cards have already been dealt out, but the other side’s cards haven’t started to be dealt yet—and nobody knows what they are. The next thing to watch is how the ‘duo’ head’s moves will impact the market!