The Collision Course

Morning Express Research Posts

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Inflation data and quad witching collide with fresh treasury supply to build a narrative into next week’s Fed policy decision.

We enter another critical two-week stretch, this one characterized by U.S. CPI Wednesday, Quadruple Witching Friday, and the Federal Reserve’s policy decision next Wednesday. Risk-assets are firm this morning after an article from Nick Timiraos of the Wall Street Journal over the weekend, discussing a shift at the Fed to be more patient with rate increases to assess the economy. Additional tailwinds came from stronger-than-expected New Loans data from China overnight. Still, the 10-year and 30-year Treasury futures are essentially battling at two-and-a-half-week lows, the area in which they rallied off a low on August 23rd, meaning rates are lurking at elevated levels. The U.S. Treasury plans to auction $44 billion 3-year Notes at noon CT today, $35 billion 10-years tomorrow and $20 billion 30-years on Wednesday. A deluge of economic data this week including inflation and retail sales will collide with the added supply as we head through Quad Witching volatility and build expectations for next week’s Fed policy decision.

E-mini S&P (September) / E-mini NQ (September)

S&P, last week’s close: Settled at 4461.75, up 5.50 on Friday and down 59.75 on the week

NQ, last week’s close: Settled at 15,297.50, up 15.25 on Friday and down 218.75 on the week

Bias: Neutral

Resistance: 4483-4585.50*, 4491-4494.25***, 4501.75-4504***, 4516.50-4521.50***

Pivot: 4477.50

Support: 4468.75-4473**, 4561.75***, 4445.50-4447**, 4434.25-4438.50**, 4425.50**, 4414.25***, 4386-4395***

NQ (Sept)

Resistance: 15,390-14,423***, 15,514-15,538***, 15,593-15,610***

Support: 15,345**, 15,270-15,297***, 15,157-15,195***, 15,048-15,075***, 14,979***

Crude Oil (October)

Last week’s close: Settled at 87.51, up 0.64 on Friday and up 1.96 on the week

Bias: Bullish

Resistance: 87.95-88.09***, 89.14***

Pivot: 87.51

Support: 86.83**, 86.15-86.41***, 85.52-85.56***, 84.82-85.03***, 83.69-84.16***

Gold (December) / Silver (December)

Gold, last week’s close: Settled 1942.7, up 0.2 on Friday and down 24.4 on the week

Silver, last week’s close: Settled at 23.174, down 0.066 on Friday and down 1.388 on the week

Bias: Neutral

Resistance: 1954.2-1954.8***, 1963.9-1967.1***, 1976.1-1982.6****

Pivot: 1946-1947.9

Support: 1939-1941.7**, 1926-1931****

Silver (December)

Resistance: 23.38-23.45**, 23.65-23.76***

Pivot: 23.25

Support: 23.04-23.08***, 22.72-22.85**


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Futures trading involves a substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. 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.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy, and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third-party application. Blue Line Futures employees use only firm-authorized email addresses and phone numbers. If you are contacted by any person and want to confirm your identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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