The Russell 2000 and Nasdaq 100 are leading equity markets higher as the 2s10s spread is slightly more inverted. Silver catches a bid and faces major overhead resistance.
[Auto Transcribed]
Good afternoon, traders. It’s Chris Chavez with Blue Line Futures and it’s your daily midday market minute. The Nasdaq, the Russell 2000 leading equity markets higher here today. But before we get to it, if you’re watching this video like it, subscribe if you’re on our website, there’s also a link to direct you to YouTube. You can subscribe that way.
We would love for you to follow us. We would love for you to help us build our following. And looking at the equity markets here today, the Nasdaq and the Russell really going neck and neck for a first place outperformance here today. So slightly in positive territory. But really what is fueling this rally, when you look at the TOS ten spread the yield curve is slightly more inverted here today.
That spread between the two tends about two basis points lower. So you have about a 23 basis point inversion. Now and you kind of came on some significant technical resistance overhead. Now that’s leading right into this week’s labor market data. We have jolts consumer confidence, as you know. We also have the Fed’s interest rate decision, ADP, nonfarm nonfarm and the unemployment rate as well as average hourly earnings.
So not only the data but also we are amidst tech earnings this week. So really watching that 2/10 spread that’s going to be really important, very significant indicator for, you know, forward looking into the future as far as economic growth is concerned. So you’re seeing that little inversion take place today just a bit more. And I think that’s what’s providing relief to the Russell specifically.
Small caps. As you know, the ten year Treasury yield is also lower. Now, looking at some of the precious metals, same kind of scenario, silver really outperforming here today. Gold slightly in positive territory. So silver in the metals complex really catching a bid. And I think again that 2/10 spread also, you know, yields being lower today is really what’s aiding that relief rally that we’re seeing.
So again, a lot of data to pay attention to this week earnings, Jerome Powell, all of it. And the guidance that we get from Fed Chair Powell is definitely going to be pivotal. And that could put, you know, some of these depressed commodities like silver and some of the depressed equities that we’ve seen relative to tech like the Russell 2000 in the position to outperform, especially if we do get some dovish comments from the Fed.
Now, some of the technicals to keep an eye on three star overhead resistance for the S&P 4931 in three quarters to 4934 and a quarter. NASDAQ three star resistance is also going to be that overhead level that we definitely need to clear. 17 six, 26 to 17, 640. Crude oil, a three star support level, 7631 to 7670. We traded right within that pocket here today.
We’re slightly higher in the 77 or so. So I want to make sure that we continue to hold this and we can begin to see more upside momentum, especially if economic growth is better than expected. And you have seen consensus estimates start to tick up. Now, consensus estimates calling for GDP growth rate of 1.5% versus previously expected 1.3%.
I think that’s really what’s been adding some relief to crude oil here. So if you continue to see resilience in the labor market this day, this week, you know, that could definitely continue to propel crude higher. Looking at silver three star resistance level 2311 to 2315, we are above that. I want to see us close above there today to see more bullish momentum.
If you have any questions, reach out to our Trade desk. Remember, futures trading involves substantial risk of loss and is not suitable for all investors.
[End of Transcript]