E-mini S&P (December) / E-mini NQ (December)
S&P, yesterday’s close: Settled at 4562.25, up 34.75
NQ, yesterday’s close: Settled at 16,086.50, up 190.75
E-mini S&P futures hit the highest since September 5th, and the E-mini NQ the highest since its gap aligning with rare major four-star resistance on July 19th (16,159). NVDA reports earnings after the bell, and the tech sector will be highly dependent on the stock’s reaction. Bill Baruch touched on his outlook while on the CNBC Halftime Report desk on Friday. If you are trading and want to do your best to avoid the tail of NVDA, we suggest looking at the E-mini Dow futures, which have only reached the highest level since September 15th. Does this open the door for a catch-up trade?
Price action in the E-mini S&P futures ran through significant resistance at 4555, aligning with the September 15th close and September 16th reversal. This will serve as our Pivot and point of balance and while trading above here the bulls will look to stretch the run to 4600. However, while below here, it opens the door for consolidation at minimum, which could trade down to 4524-50-4527.50 while remaining very constructive.
Resistance: 4562.25***, 4569.75-4571**, 4597.50***, 4653****
Support: 4539.50-4541.25**, 4524.50-4527.50***, 4512.75-4514.25***, 4498-4503***, 4490.25**, 4462.25-4470.25**, 4447**, 4425.25-4430.50****, 4419.25-4420.25**, 4407.25-4409.50***
Resistance: 16,063-16,086***, 16,117-16,123**, 16,159****, 16,265-16,275****
Support: 15,977-15,997**, 15,937-15,942**, 15,894-15,906***, 15,825-15,832**, 15,790***, 15,719-15,732***, 15,588-15,612***, 15,547-15,552****, 15,453-15,468***
Crude Oil (January)
Yesterday’s close: Settled at 77.83, up 1.79
Crude Oil futures traded more than 8% from Thursday’s low and ran into major three-star resistance at 77.80-78.19 before consolidating. Like clockwork, the December options fell off the board, and Thursday’s selling proved to be a squeeze within a pocket of illiquidity. We will understand more today and tomorrow, and a healthy consolidation out above major three-star support at 75.89-76.24 should encourage higher prices. With that said, there is tremendous damage done within the windfall of selling below $80, and there are two strong waves of major three-star resistance detailed in our levels below in which Crude Oil must trade out above in order to repair the damage.
Resistance: 77.80-78.19***, 78.39-78.46**, 79.20-79.65***, 80.10-80.23***
Support: 77.20-77.28**, 76.86*, 75.89-76.24***, 75.31-75.41**, 74.25-74.48**, 73.66-73.90***, 72.91-73.09***, 72.31-72.47***, 70.00-70.69***
Gold (December) / Silver (December)
Gold, yesterday’s close: Settled at 1980.3, down 4.4
Silver, yesterday’s close: Settled at 23.614, down 0.238
Gold and Silver futures are showing renewed signs of life this morning after reversing sharply from the Friday morning high. Today’s strength appears to be led by Gold, which has stuck its head above the psychological $2000 mark, whereas Silver has yet to trade above $24, a level achieved last week. Yesterday’s strong 20-year auction, though only $16 billion, did prove to help lift sentiment, and Gold seems to be playing catch-up to the narrative. Lastly, we cannot ignore U.S. Dollar weakness, but more importantly, the Chinese Yuan strength, which the Yuan has strengthened to its best against the U.S. Dollar since August 7th. A strengthening Yuan is seen as a tailwind to commodities, not only exuding better growth but allowing for the purchase of more commodities per $1.
Resistance: 1999.2-2000.1***, 2003.6-2005.9***, 2009.2-2012.7****, 2019-2022.1**
Support: 1986.1-1988.6**, 1979.9-1980.3**, 1973.1-1975.8**, 1966.9-1967.7***, 1958.8***, 1949.8-1953.5***, 1935.6-1938.8****
Resistance: 23.85-23.93****, 24.16-24.22**, 24.56-24.63***
Support: 23.61-23.64**, 23.27-23.34***, 23.04-23.08***, 22.81-22.90***