E-mini S&P and NQ Futures Face Key Resistance Amid Uncertainty
E-mini S&P (March) / E-mini NQ (March)
S&P, last week’s close: Settled at 5776.00, up 29.75
NQ, last week’s close: Settled at 20,229.75, up 140.50
E-mini S&P and E-mini NQ futures traded well in the second half of Friday, but that rebound has been erased ahead of today’s opening bell. Uncertainty remains at the forefront, and markets hate uncertainty. We believe last week’s Atlanta Fed GDPNow tracker describes the current environment in a nutshell. Known for its whimsicality, it posted -2.8% Q1 GDP before being revised to -2.4% on Thursday. However, after Friday’s close, there was an unusual update within an article posted by the bank, increasing Q1 estimates to -1.6% after factoring in Nonfarm Payrolls. Furthermore, it added the published model did not account for a “trade deficit spurred by an increase in nonmonetary gold imports,” and factoring such would increase Q1 GDP all the way to +0.4%. This is important because it embodies everything markets are experiencing: a framework of uncertainty. With that said, markets discount things fast, and we believe, like GDP, it has been exacerbated, at least in the near-term.
E-mini S&P futures settled at the pocket we highlighted here Friday, 5768.25-5774, which has been adjusted for settlement. There is now a gap settlement here and for the E-mini NQ at 20,230. Along with highlighted resistance within range, there is a defined area in which the bulls must clear in order to attempt to shift the tides for at least a short time. Price action in the E-mini S&P is attempting to have some buoyancy at the 50% retracement to the August low at 5698.25. Sellers will attempt to take the tape lower if price action does not respond to this support and cannot hold steady within our Pivot and point of balance in the E-mini S&P at…
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