Housing data came in slightly higher than estimates, and Eurozone CPI was in line with expectations. Crude finds support and Stocks consolidate ahead of next week’s Treasury auctions.
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Good afternoon, traders. It’s Chris Chavez with Blue Line Futures and it’s your daily midday market minute. Stocks are consolidating here. We got some housing data this morning. But before we get to it, if you’re watching this video, like in subscribe, if you’re on our website, there is also a link to direct you to YouTube and you can subscribe that way.
We would love for you to follow us. We would love for you to help us build our following. Yeah, we got building permits and housing starts this morning, which did come in a little bit hotter than consensus estimates. But one thing I want to highlight is when you look at the CPI report for the month of October, we saw, you know, inflation in the shelter component.
Now, owners equivalent rent showed an uptick. You know, rent as a whole showed an uptick. However, it was at a slower pace, a slower increase than September. So I do think that some of this housing data was potentially already priced in with, you know, maybe even seasonality. And, you know, moving forward, we’re going to want to pay attention to more economic data.
And as of right now, you know, the markets definitely like the fact that we’ve seen deflation with producer prices, no inflation in the month of October for consumer prices. And we’ve seen the bond market reprice interest rate cut expectations. So we’re going to want to pay attention again to the data coming out next week. We’re going to get Treasury, new Treasury issuance.
There’s going to be a three month, a six month auction and a 20 year bond auction. If we can remember the last auctions that we had, we had good auctions on the shorter end of the curve, but the 30 year bond auction really struggled. So hoping that the 20 year bond auction doesn’t have that same effect on the markets.
But we will see when we get that auction next week. Next week, we’re also going to get durable goods orders and some Michigan data jobless claims. That’s about it. We do have the holidays coming up, so it’s not filled with a lot of economic data to pay attention to. This morning. We also got eurozone CPI came in at expectations.
So it’s good to not see the eurozone showing any signs of increases in inflation either. Now we’re looking at the S&P. The Nasdaq really want to just hit home on some of these major support levels that we’ve highlighted here as of late. Major four star for the S&P 4555. We’re going to want to clear above there before we can retest these 52 week highs.
You know, Nasdaq’s at 16018 to 16063 level and crude oil. We’re seeing a little bit of a rebound here today, not seeing a huge move in Treasuries. You know, nothing crazy. I do think that this is a relief rally more than anything. You know, we’re going to want to break above 76, 86 to 77, 28 to sustain a reversal of this trend.
That’s a major three star support or three star resistance, rather. And looking at the gold market again, psychologically significant, 2000 handle you breaking close above there. I think we can find our way higher. If nothing else, we have more conviction to consolidate and hold those levels before moving higher. If you have any questions, reach out to our trade desk.
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