Markets Rebound as U.S. Strikes Iran—Support Holds in S&P and NQ

E-mini S&P (June) / E-mini NQ (June)

S&P, last week’s close: Settled at 6018.00, down 16.25 on Friday and 13.50 on the week

NQ, last week’s close: Settled at 21,844.75, down 100.50 on Friday and 16.00 on the week

E-mini S&P and E-mini NQ futures opened lower Sunday night after the U.S. carried out missile strikes on three nuclear sites in Iran. On the one hand, this can be seen as a significant point of escalation in the regional conflict, but markets have reacted rather calmly. Index futures pared all initial losses, Crude Oil pared all gains, and Gold spent much of the session in the red. On the other hand, the strikes have debilitated Iran, and many of its allies have already been weakened on other fronts. Markets typically attempt to front-run escalation, while such pinnacles can, at times, forecast de-escalation, and that is what markets are discounting. Additionally, Iran has only threatened to close the Strait of Hormuz. Such a move would harm China which relies heavily on imports thorough the passageway, and it is reported the U.S. has called on China to prevent this. We now await further developments.

Flash PMIs for June are due at 8:45 am CT and traders must keep an ear to the ground for Fed speak.

E-mini S&P and E-mini NQ spiked into the Friday open and expiration event, both failing at resistance that is now a major three-star mark and line in the sand at 6067.75-6073.75 and 22,130-22,158. Despite the spike lower on the open last night, we will still lean on Friday’s intraday low as a first key support coming in at 6003.25-6006.50 and 21,765-21,796. As the U.S. session gets underway, we will lean on our Pivot and point of balance, continued price action above here will pave the way for higher prices, with these pockets coming in at……