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Bill Baruch joined the CNBC Halftime Report to discuss Micron and what he is doing ahead of earnings.
E-mini S&P (December) / E-mini NQ (December)
S&P, yesterday’s close: Settled at 5779.00, down 13.00
NQ, yesterday’s close: Settled at 20,192.00, up 24.25
E-mini S&P and E-mini NQ futures are sharply higher and attempting to establish a formidable breakout. Despite an exhausted tape yesterday, blowout earnings from Micron quickly reinvigorated the AI trade. The name is up more than 15% ahead of the opening bell after beating estimates, raising guidance, and improving margins. Bill Baruch joined the CNBC Halftime Report yesterday, ahead of earnings, to discuss why he likes the stock (video above). Fresh momentum behind Tech was met with policy jawboning for the third day in a row from China. After broad-based stimulus and the largest policy rate cut on record (30bps since the tool became used in 2016), China’s Politburo pledged continued support for housing, fiscal spending, and rate cuts. The Shanghai Composite is up another 3.6% and the E-mini NQ has followed, gaining more than 1.5% overnight.
Price action in the E-mini S&P has ripped through the 5800 area to create the aforementioned breakout, whereas the E-mini NQ has now decisively cleared the August highs. Before we discuss upside targets, we want to make note of the gap higher from yesterday’s close, and this creates a rare major four-star support floor in the E-mini S&P at 5779-5785 and in the E-mini NQ at 20,135-20,192. To the upside, as long as price action holds above our Pivot and point of balance denoted below, the path is clear to our second-tier major three-star resistance targets in the E-mini S&P and E-mini NQ at….
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