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E-mini S&P (December)

Yesterday’s close: Settled at 3238, up 6.75

NQ, yesterday’s close: Settled at 10,891, up 62.75

Fundamentals: U.S. benchmarks are again on their backfoot. This time as the U.K. and Spain expand restrictions and lockdowns due to the spread of Covid-19. In fact, the Spanish Health Minister is recommending a total lockdown of Madrid. Domestically, the House of Representatives is trying to gather support behind a watered-down fiscal bill calling for $2.4 billion in spending, it could be voted on next week. Although the White House is eager to support the economy ahead of the election, the move may fall on deaf ears in the Senate.

The S&P set new lows on the open yesterday. This was a swing we anticipated in the Technical section and said to buy. All major sectors finished in the green except for Healthcare. Industrials overall struggled with Boeing, Raytheon, and Lockheed Martin facing heavy losses, but nudged out an industry positive. The NQ did not set a new low yesterday morning and tech could propel a strong finish for the week. Yesterday, Apple, Microsoft, Alphabet, Amazon, and chipmakers all achieved healthy sessions. The Financials are working to recover losses from earlier in the week. Traders should keep a pulse on Healthcare, Industrials and Financials, given that tech seems eager to move higher, if these sectors can hold ground early it could pave the way for a strong finish.

On the economic calendar, Durable Goods data is due at 7:30 am CT and New York Fed President Williams speaks at 8:00 am CT.

Technicals: Price action in trying to bottom out and turn, but yesterday just could not follow through. We continue to hold 3246.50-3256.75 as a rare major four-star level; this was support on the downside and is now a crucial barrier on a closing basis. The S&P must settle above here in order to help work to create a formidable near-term bottom. For now, continued action above 3212-3217.75 early would help pave the way for buying after the open. The same goes for the NQ holding steady above ...  Plesae 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 (November)

Yesterday’s close: Settled at 40.31, up 0.38

Fundamentals: Crude Oil has been waffling around the psychological $40 mark looking for direction. On one hand, OPEC and the IEA were pessimistic on demand moving into 2021 due to the threat of Covid-19. This morning we are seeing increased lockdowns in the U.K. and Europe which has smacked the tape back from overnight highs. Furthermore, despite harsh comments from the Saudi Oil Minister last week, remember, OPEC did taper its production cuts beginning August 1. Now, Libya, who is exempt, reached a ceasefire which promises to add about 150,000 bpd to the market. On the other hand, demand from China remains strong, however, a strong U.S. Dollar will work to offset what has been the bellwether.

Bill Baruch joined the TD Ameritrade Network yesterday to discuss the energy sector.

Technicals: First key resistance at 40.30-40.51 continues to keep rallies in check and yesterday’s settlement was no different; after extending to a high of 40.64 overnight, the tape is back below the $40 this morning. The strength through the last 24 hours though has lifted our momentum indicator to ...  Plesae sign up for a free trial at Blue Line Futures to have our entire technical outlook, actionable bias, and proprietary levels emailed directly.

Gold (December)

Yesterday’s close: Settled at 1876.9, up 8.5

Fundamentals: Gold finished well yesterday, snapping back from a massive area of technical support. However, that strength dissipated overnight in the face of a firm U.S. Dollar and the fear that lockdowns in the U.K. and Europe could bring a wave of deflation. Still, the metal is consolidating healthily after this week’s bludgeoning. We maintain that his is where you want to be a buyer and not where you want to be selling; our narrative has been about as perfect as it could be in recent weeks and months, advising against FOMO. Next week will be crucial as we look to a heavy slate of data from China and the U.S as well as continued fiscal talks in Washington. Progress on those talks are a wild card to bring a wave of buying in Gold ahead of the weekend.

Technicals: Price action is responding to our rare major four-star support at 1845.4 and our buy zone at 1855. Yesterday’s recovery stalled in front of first key resistance at 1885.4-1889.6 despite holding steady out above our Pivot and clearing minor resistance briefly. Our momentum indicator comes in at ...  Plesae 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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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

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