E-mini S&P (December) / E-mini NQ (December)
S&P, yesterday’s close: Settled at 6092.75, up 46.50
NQ, yesterday’s close: Settled at 21,793.50, up 388.25
E-mini S&P and E-mini NQ futures reacted exactly to script on yesterday’s CPI release. We noted that the selling Monday and Tuesday, on the heels of tech’s breakout last week, presented an advantageous setup for CPI. If inflation was not hot, indices now had a higher probability of reacting favorably versus a market melt-up into the number. Both Core and headline CPI were right in line with expectations, and what did we get? The E-mini NQ roared to new highs, with GOOG and TSLA being the latest Mag 7 names to set a fresh record. Semis also snaped back, driven by news AVGO has been tapped by AAPL to develop its new AI chip, which comes ahead AVGO’s earnings after today’s close.
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The busy economic calendar continues today with an ECB policy decision at 7:15 am CT. The bank is expected to cut rates by 25bps, and a press conference follows at 7:45 am CT. From the U.S., PPI for November is due at 7:30 am CT along with weekly Initial Jobless Claims. Remember, producer prices are a lead indicator of consumer prices. There is also a 30-year Bond auction at noon CT.
E-mini S&P and E-mini NQ futures reacted immediately upon yesterday’s data release and the path from its start through the opening bell range provide layers of tradable support detailed in our levels below. We have had rare major four-star resistance overhead in the E-mini NQ which was pinged perfectly yesterday at 21,820, the 50% extension from range defined by the post-election highs and lows. As price action is settling in this morning, it helps create our Pivot and point of balance; higher prices will be stoked with constructive price action at and above…
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