The Nasdaq is breaking out, leading equity markets higher. Michigan inflation expectations come in under estimates, and consumers remain confident.
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Good afternoon traders. It’s Chris Chavez with the Blue Line Futures and it’s your daily midday market minute. The Nasdaq 100 is trading at all time highs. But before we get to it, if you’re watching this video, like unsubscribe, subscribe if you’re at our Web site, there’s also a link to direct you to YouTube. You can subscribe that way. We’d love for you to follow us.
We would love for you to help us build our following. The Nasdaq 100 is leading equity markets higher trading at an all time high here today. Really encouraging to see some of this price action. Now, we did get some economic data here this morning. Michigan consumer sentiment and inflation expectations, which really surprised to the upside, especially when looking at consumer sentiment.
We’ve got a print of 78.8 versus 70 expected. So it’s one of the highest readings that we’ve seen in a while. Also, inflation expectations. One year inflation expectations came in at 2.9% versus 3.1% and five year inflation expectations came in at 2.8% versus 3%. So great news to see there. You did see an initial positive reaction in the equity markets when this data got released.
We consolidated for some time and then we eventually found our way a bit higher. Nasdaq is trading at the high of the session here right now. S&P, same thing. So I really want to highlight some of these support resistance levels. But looking under the hood of the markets, you know, while a lot of this was exacerbated by some of the positive news and outlook that we got from Taiwan’s semi, I think that under the hood, it’s really encouraging to see markets moving higher on that outlook.
And I think that markets are starting to price in better than expected economic growth and further consumer resilience. And the Michigan data this morning really reflects that as well. So I think the markets are starting to care more about, okay, not five cuts or six cuts, but what will economic growth be? How strong will the consumer remain? Will they continue to spend and will profits still be fueled up in this year?
So I think that’s kind of what you’re seeing under the hood when you’re looking at the CME Fed watch tool. There’s now a 51% chance of a cut in March. So it’s a coin toss right now. And I would say that really it doesn’t seem likely that you’re going to see a cut in March. I think a lot of expectation are moving out to June and the markets are still positive despite that.
So it’s good to see. Now we will get more economic data next week. Really important PCE, the Fed’s preferred inflation indicator. We’ll get GDP numbers as well, more housing data and jobs, initial and continuing claims. Some of these support resistance levels. Three start resistance for the S&P 4836 and a half to 48, 41 and a half for trading right around this level right now.
Want to see a break in close above there before we move up to 4850. Nasdaq to star resistance, not a significant psychological level, 17 361. Crude oil, three star resistance. We did get above this level, but I really want to see us close above there again, 73, 39 to 73, 56. Gold three star support. I’m highlighting support, even though gold is positive today because we saw a nice move higher and then gold intraday came off of those highs pretty sharply 2019 and 4/10 to 2021 and 6/10.
You want to hold that level to see more momentum. If you have any questions, reach out to our trade desk. We’re here for you. Remember, futures trading involves substantial risk of loss and is not suitable for all investors.
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