E-mini S&P (December) / E-mini NQ (December)
S&P, yesterday’s close: Settled at 5837.75, down 54.75
NQ, yesterday’s close: Settled at 20,220.50, down 321.50
E-mini S&P and E-mini NQ futures had a much-needed woosh lower yesterday, which helped relieve some exhaustion, but both indices are now more than 1% from that low. The roadmap could not have been any more perfect; a break below major three-star support in the E-mini S&P at 5848.75-5853.25 quickly led to a test of major three-star support at 5821.50-5827.25, a failure to respond then opened the door for a direct hit on rare major four-star support at 5799-5805, with a low of 5801. Similarly, the E-mimi NQ broke its shelf and tested our next big area of support at 20,069-20,104. The lows in each index also aligned with a trend line from the August 5th low, chart highlighted above, and it simply could not have been scripted any better.
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Both the E-mini S&P and E-mini NQ rallied into the close and found added tailwinds from earnings after the bell. The most prominent driver is TSLA, which topped EPS, posted margin prowess and used favorable comments from CEO Musk to gain more than 11% after hours. Behind that were great reports from TMUS and LRCX. (Blue Line Capital owns TSLA and TMUS)
As today sets up, the reception of price action against the lows prior to yesterday’s break in the E-mini S&P will be crucial at 5862.75-5865, and similarly in the E-mini NQ at 20,379. Furthermore, a rally could really garner legs upon a move out above major three-star resistance in the E-mini NQ at…
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