E-mini S&P (June)
Yesterday’s close: Settled at 2844, down 18.00
Fundamentals: U.S benchmarks are battling to erase yesterday’s losses after Washington eased the imposed ban on Huawei chips. The Commerce Department announce it would allow exemptions to U.S companies selling to the Chinese tech giant for 90 days. The NQ is still down about 1% on the week, but the S&P is hovering just below unchanged and the Dow has turned positive. The relationship between the world’s two largest economies deteriorated further in recent days and while this may bring a breath of fresh air, it does not go far in solving the issues at heart; look for trade to remain a key driver of sentiment for the foreseeable future.
Last night, Fed Chair Powell spoke at a conference in Florida. He spent his time discussing rising corporate debt and did not turn to monetary policy; corporate debt is near record levels, but currently does not pose a risk. Today, we look to Existing Home Sales at 7:30 am CT, Chicago Fed President Evans at 9:45 am CT and Boston Fed President Rosengren at 11:00 am CT, both of whom are 2019 voting members.
Technicals: Volatility has certainly increased in recent weeks and thus we expect larger ranges. Considering such and the strong waves of selling yesterday, the S&P had a constructive session and held major three-star support at ... Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Crude Oil (July)
Yesterday’s close: Settled at 63.21, up 0.29
Fundamentals: Crude Oil continues to hold ground but not truly gain ground. Through yesterday’s broader weakness, price action pared the strong Sunday night open and had to battle to hold the $63 mark. Last night, Iran’s President Rouhani said resistance is the country’s only choice. This was a stark reminder of the ever-present geopolitical tensions in the region and led to another strong overnight session. However, again those gains have been pared at the onset of U.S hours. U.S Dollar strength and uncertainties on the U.S and China trade front are a strong headwind. We continue to believe the constructive technical path coupled with geopolitics ahead of Memorial weekend paint a path of least resistance higher; we remain cautiously optimistic.
Technicals: Price action again tested and failed at major three-star resistance at ... Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
Yesterday’s close: Settled at 1277.3, up 1.6
Fundamentals: Gold is facing a steep uphill currency battle. The Dollar Index is again attempting a breakout above the 98.00 mark and inversely the Euro lingers at the lowest level since May 2017. Although the Fed is favored to cut rates this year, Chinese Yuan weakness has more than offset the effects of lower rates around the world. Now, the Treasury complex is seeing weakness as economic data is showing stability. Overall, this is not a favorable landscape for Gold unless it can find a fresh bullish catalyst. We view the expiration of the June contract next week as a potential breath of fresh air. Existing Home Sales are due at 9:00 am CT, Chicago Fed President Evans at 9:45 am CT and Boston Fed President Rosengren at 11:00 am CT, both of whom are 2019 voting members.
Technicals: Price action is trekking to swing new lows and taking out the June trend line from August that we referenced here yesterday. Remember though, we remained Neutral and pointed to what could be a more ... Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.
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