S&P and NQ Eye Resistance—Momentum Needs Follow-Through

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

S&P, yesterday’s close: Settled at 6307.25, up 35.25

NQ, yesterday’s close: Settled at 23,052.75, up 156.00

E-mini NQ futures tapped a fresh record high on the open yesterday morning, before paring gains along with the E-mini S&P and nearly covering the intraday gap from Tuesday’s close. Price action then firmed up as the session unfolded, and the risk appetite remains buoyant in lieu of loose macro conditions. A chart has been circulating from J.P. Morgan, highlighting the risk environment supported by “a depreciating dollar, narrowing credit spreads, subdued inflation, and interest rates remaining below 4.5%” (chart above).
  

Despite a bit of whiplash after a strong open, yesterday’s range in the E-mini S&P was still only 0.6%. Overhead resistance is established from last week’s record close in the E-mini S&P at 6324.25, which it fell shy of yesterday with a swing high of 6315.25. However, the E-mini NQ is also trying to work through resistance aligning with its July 3rd close at 23,062, despite briefly trading to a fresh high of 23,112. These levels represent major three-star resistances for each index detailed below. As today’s session unfolds, we will be keeping a close eye on our Pivot and point of balance that aligns with our momentum indicator; some exhaustion could play out upon a failure to hold above these levels at…