S&P and NQ Struggle to Hold Bounces Before NVDA

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

S&P, yesterday’s close: Settled at 6639.75, down 52.25

NQ, yesterday’s close: Settled at 24,595.75, down 283.25

E-mini S&P and E-mini NQ futures failed to hold another rebound yesterday. After trading to one-month lows, indices bounced 1.5% and 2%, respectively, but failed to stick the landing through close. It was tech that struggled the most with NVDA -2.8% and MSFT -2.7% after the companies announced they had invested a combined $15 billion in Anthropic. In turn, Anthropic committed to purchasing $30 billion in computing capacity from Microsoft. For months, this was the exact type of announcement that jolted prices higher, but that was certainly not the case yesterday. Also down were MU -5.6%, AMZN -4.4%, and AMD -4.3%, as fears of lofty AI valuations weigh on the tape. This all builds up to NVDA’s highly anticipated earnings release after the bell today. Also, the Minutes from the October Fed meeting are due at 1:00 pm CT.

E-mini S&P futures responded yesterday at a level of support it needed to, the settlement from October 10th at 6595.25, with a low of 6594. E-mini NQ futures also bounced when necessary, responding to rare major four-star support at 24,397-24,410, with a low of 24,376. However, after ripping higher, price action struggled against overhead resistance, now defined at 6685.50-6687.50 in the E-mini S&P. Additional levels in that region for both indices are shown below. As today unfolds, we must see a constructive tape leading into NVDA earnings. Ultimately, we do not want to see a close on the lows ahead of this release. Continued price action above our Pivot and point of balance, which align with our momentum indicators at…