A dearth of economic data and continuing concerns about whether the US will succeed in passing any tax reforms has splashed cold water on markets ahead of the US Thanksgiving break - Thursday (Friday AEDT). Trading is often subdued at least the day before Thanksgiving and often the following day as traders cash in leave for an extra long weekend.
While the three US benchmarks pulled back over the weekend, there's no sign of an imminent broad or deep retreat. The S&P 500 remains up more than 15 per cent so far this year.
The US economy appears to be firing on all cylinders and that's helping bulls argue that stock valuations are not unreasonable.
This week investors will get a chance to hear from Fed chair Janet Yellen and to parse the minutes from the Fed's latest policy meeting. Fed fund futures point to near total consensus that rates will rise at the Fed's December meeting. The focus is increasingly shifting on where rates are headed in 2018.