The Russell 2000 outperforms along with BTC futures. CPI is due tomorrow at 7:30 CST, and the ES and NQ continue to make new highs.
Chris Chavez, Market Strategist
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Good afternoon, traders. It’s Chris Chavez with the Blue Line Futures and it’s your daily mid-day market minute the Russell 2000 and Bitcoin are outperforming amongst risk assets 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 in the Russell 2000 outperforming here today despite shorter term Treasury yields slightly in positive territory here, some of the longer duration yields are just about in negative territory and unchanged for the day. But the Russell is leading the way. Bitcoin is trying to test that 50,000 psychologically significant 50,000 barrier.
Now when you’re looking under the hood now, this is definitely interesting. You know, looking at the Russell outperforming here today despite some of the yields along the yield curve being in positive territory and longer yields really unchanged for the day, I think this really adds conviction to the amount of money flowing into some of these names that are currently expected to outperform like SMK Supermicro Semiconductor chip manufacturing company with significant exposure to AI, which has been the theme of course for this year and really last year as well.
This emerging A.I. trend also looking at some of the other constituents inside of the Russell 2000 index that are outperforming today, MSI. TR MicroStrategy again with the move that we’re seeing in Bitcoin today, which really just goes back to the fact that these two themes and these two risk assets that are really outperforming the mouse chips and Bitcoin is really what’s putting the Russell ahead of the pack when looking at the Nasdaq and the S&P, both those two indices also in positive territory.
Again, trading up to all time highs here today. We’re coming up on some significant overhead resistance, but we did break through, at least for now, a pretty significant level already. So we really just want to see some of these levels, some of these levels be, you know, taken out, get their close above there to continue to see more momentum moving forward.
Now, we did get some economic data this morning. New York Fed one year inflation expectations, which came in at 3%. That was what really expectations were kind of expecting, didn’t really see much of a surprise there. Not a significant move in yields as well. And I think that coming into tomorrow with CPI, it’s going to still be very, very important.
But the markets have started to move further away from interest rates and trading solely off of interest rates. Whether or not there’s going to be a hike or a cut, I think the markets have started to accept the fact that consumers have remained resilient. Growth and earnings have continued to beat expectations. So far we’ve seen upward revisions to GDP growth this year.
So I think as long as earnings continue to look strong, expect expectations continue to be met. Consumers continue to spend the labor market is still tight. We’re probably going to trade higher. The only problem with that is that’s really the Goldilocks scenario where every single aspect of the economy and also the stock market too, is just in a Goldilocks scenario.
So if something does start to break, the macro environment will begin to hold a lot more weight as well. So tomorrow’s CPI print still going to be very, very important for, you know, other risk assets, specifically the metals, gold and silver. When you’re looking at those two today, gold slightly in negative territory, while silver really traded higher and then sold off just about at the open, some significant overhead resistance.
But this macroeconomy mic data is still going to be largely influential on the precious metals, industrial metals as well, and some other commodities too. Looking at the S&P to star resistance level is going to be 5045 and three quarters 250, 48 and a half. We are above that level here in today’s trade. So far so we want to see a break in close above there.
That’s a two star level looking at the Nasdaq. A two star level is going to be 1857 to 1871 at 18,071. We want to see a break in close above there as well, which we are above there as of this video. And crude oil, three star resistance, 7683 to 76, 95. We did trade lower today and then made our way off of the lows.
And it does look pretty strong and looks like the markets have a little bit of conviction. You know, crude oil specifically, if we can break in close above there, especially after being off of the lows today to star support level or our three star resistance level, rather, for the silver market is going to be that 2315 barrier. We got slammed right after we hit that level today.
But silver is positive along with copper, the industrial metals today, so it is encouraging to see again, tomorrow’s data will be really important. 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.