E-mini S&P and NQ Struggle for Direction as Russell Hits Record High

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

S&P, yesterday’s close: Settled at 6866.75, up 4.75

NQ, yesterday’s close: Settled at 25,622.75, down 34.75

E-mini S&P and E-mini NQ futures struggled to find direction. Leadership came from META, NVDA, ORCL, JPM, and another great day from APP. Healthcare was on its back foot and that could be seen through the E-mini Dow’s underperformance through midday. However, this was not the case for the E-mini Russell, which added 0.83%, bringing it to +1.23% on the week and matching its record closing high. We could have a breakout on our hands for this index, as a cleaner test of the October record highs is underway in the IWM ETF.

The Core PCE Index, the Fed’s preferred inflation indicator, is due at 9:00 am CT, although this is only a September read due to the government shutdown. Also released at that time is the Michigan Consumer slate, fresh for December. This includes sentiment data along with inflation expectations.

E-mini S&P and E-mini NQ futures extended the range a bit higher overnight and held there quietly before dipping ahead of the U.S. open. Though the trade has been buoyant for much of the week, it has not come without sharp waves of selling. Although the E-mini NQ has outpaced the E-mini S&P this week, neither index has cleared the November 12th high. The slow grind higher, with marginal range extension in the E-mini S&P is a positive, but it becomes important to see a decisive move through last Friday’s high and close at 6863.75 and 6859.50, respectively. We are seeing this in the E-mini Russell, but the others must join. Price action must remain buoyant to invite fresh buying and hold above our Pivot and point of balance at..