As Treasury yields dip and tech stocks pause, Bitcoin and The Russell 2000 gain momentum. A 3-year note auction is due at 12 CST and Crude Oil is approaching a key resistance level.
Chris Chavez, Market Strategist
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Good afternoon, traders. It’s Chris Chavis with Blue Line Futures, and it’s your daily midday Market minute. The Russell is outperforming here today with lower treasury yields, seeing some profit-taking in Tech. But before we get to it, if you’re watching this video, like and subscribe. If you’re on our website, there’s also a link to direct you to YouTube. You can subscribe that way. We love for you to follow us. We would love for you to help us build our following.
So, treasury yields are slightly lower here today. Treasuries are catching a bit of a bid, but there’s no real material economic data this morning that’s really influencing this. Then you’re seeing just a little bit of breathing as far as this move that we’ve seen as of late in treasuries and in yields. Now, when looking at some of the outside markets, crude oil and Bitcoin, Ethereum, those are really the big outperformers amongst risk assets. The lower treasury yields kind of fueling some of that risk asset conviction behind some of those speculative assets like cryptocurrencies.
But you know, when looking at crude oil, I think it’s kind of important to note that we have seen much better than expected economic data, a resilient labor market, a confident consumer, and inflation expectations that have continued to look encouraging. I think that definitely sets the stage for stronger demand for crude as we’re coming into these warmer months of the year as well. March and April, maybe you could see a little bit of a seasonal rally start to set up for crude, and we are kind of coming back to trendline resistance. It was previously trendline support. So really, I want to see us break and close above that key level, which is 73.78 to 74.13. I want to pay attention to that level in crude.
Now, again, there’s not really a lot of material economic data that we’re going to be getting this week, but we will get a lot of Fed speak, committee members speaking about the path of the Federal Reserve, what their personal opinions are as far as that path is concerned. That can really influence interest rates, interest rate expectations rather, especially in intraday sessions. So you could definitely see some volatility in equity indices, precious metals, any risk asset that’s influenced by yields.
Today, we’re going to get a three-year note auction at 12 Central Standard time, and we’ll get continued auctions and more treasury issuance throughout the week. That will be important to pay attention to. And looking at some of the equity indices, support and resistance levels, a three-star support level to pay attention to in the S&P, which is slightly outperforming the NASDAQ here today right here right now, 4929 to 4931 and 3/4. The NASDAQ Three Star level, 17484 to 17519. Silver, a three-star level that has held pretty strongly here, and we’re slightly coming back today, looking at the precious metals complex with lower yields, 2204 to 2205. That’s a three-star support level to pay attention to closely.
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