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E-mini S&P (March) / E-mini NQ (March)
S&P, yesterday’s close: Settled at 6120.50, up 36.25
NQ, yesterday’s close: Settled at 22,000.50, up 291.00
E-mini S&P futures traded within 1% of a record high yesterday, and although the E-mini NQ cleared the December 26th gap, it did not settle above there. We have seen a bit of a consolidation lower into this morning, and it is notable that while the E-mini S&P and E-mini NQ are lower, the E-mini Dow is clinging to a very modest gain. Is it time for a rotation?
The U.S. Dollar and rates are edging higher, and markets are taking notice. Initial Jobless Claims came in higher than expected this morning and look to derail this potential shift. President Trump is expected to speak around 10:00 am CT, and the Bank of Japan holds a policy decision tonight. Flash PMIs for January are due tomorrow.
While we do not see the bull case derailed, we must acknowledge the speed of the move this week and the upside targets achieved. Therefore, we have reduced our bullish Biases, as noted below. On Tuesday, the E-mini S&P cleared the December 26th gap at 6095.25, and yesterday tested major three-star resistance at 6136.25-6137.75 before retreating into the close. As noted above, the E-mini NQ’s achievement, but the soft close. That 6095.25 level in the E-mini S&P is now a critical area of support on a closing basis, and our Pivot and point of balance comes in at 6113.25. In the most constructive environment, the bulls respond here, but have room to test major three-star support at…
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