E-mini S&P (September)
Yesterday’s close: Settled at 3379.75, up 18.25
NQ, yesterday’s close: Settled at 11,286.75, up 153
Fundamentals: U.S. benchmarks are broadly better ahead of the bell, finding tailwinds from strong earnings and Dollar weakness. Home Depot’s 2nd quarter report early this morning reinvigorated a quiet overnight tape. The ‘do it yourself’ narrative during the Covid-19 pandemic was a key driver for the company whose sales and profit surged by 23% and 25% from a year ago. The stock is up nearly 3%. Walmart also reported a blowout quarter, led by e-commerce sales doubling YoY. The stock briefly spiked by about 7% after the announcement but has pared all gains.
The Dollar Index is poised for its fifth straight losing session after Washington failed to pass fresh fiscal measures. The weakness kicked in after the Senate adjourned and JPMorgan estimates every month pandemic unemployment is delayed hits GDP by 0.4%. Each chamber of Congress has begun formalizing respective stimulus bills that could be voted on by Saturday. A failure to reach a bipartisan bill to buoy the economy will seemingly force the Federal Reserve to implement additional monetary measures. The economic data has broadly improved, but will these tailwinds continue? Building Permits and Housing Starts both topped expectations this morning. The St. Louis Fed’s GDPNow estimates Q3 GDP at 26.2%.
The White House continues to pressure Chinese tech firms. Late yesterday, they announced a rule that even non-U.S. companies cannot sell chips made with U.S. technology to Huawei without a license. The market is ignoring rising U.S.-China tensions, Bill Baruch joined CNBC’s Trading Nation to discuss Chinese tech companies.
Technicals: The NQ set a fresh record overnight and the S&P extended its range. Each is holding out above our momentum indicators that align closely with settlement prices. For the S&P, this is our Pivot and old major three-star resistance at ... Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias and proprietary levels emailed directly.
Crude Oil (October)
Yesterday’s close: Settled at 43.17, up 0.86
Fundamentals: Crude Oil continues to lurk just below the March 6th gap. Keeping a bid under the tape are U.S. Dollar weakness, expectations for the fourth straight week of inventory draws, and anticipation of improved U.S. Crude exports to China. At the same time, news overnight that China slowed its inventory build rate have worked to keep the rally in check at strong overhead resistance. API is due after the bell at 3:30 pm CT.
Technicals: September Crude Oil closed above its continuous 200-day moving average yesterday in its last day as front-month. October Crude is trading higher and extended gains overnight out above its March 6th gap at 42.92 to a high of 43.29. The October 200-day moving average is overhead at 43.57. Despite the overhead resistance, steady action above ... Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias and proprietary levels emailed directly.
Yesterday’s close: Settled at 1998.7, up 48.9
Fundamentals: Gold is steady out above the $2000 mark with the U.S. Dollar making fresh lows. There are budding fears that the U.S. economy would lose any momentum if Congress cannot muster bipartisan fiscal measures. This coupled with Warren Buffett stepping into the precious metal space have laid strong groundwork to start the week.
Technicals: Gold is decisively out above the 2004-2007.7 mark and testing key resistance at 2020-2028, the breakdown point from one week ago. At these levels, we do not advise chasing the metal as it first must achieve a close above previous resistance at ... Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias and proprietary levels emailed directly.
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