E-mini Futures Pull Back Early, Rebound on NVDA-China News Amid Rising Yields

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

S&P, yesterday’s close: Settled at 6878.25, up 11.50 on Friday and 18.75 on the week

NQ, yesterday’s close: Settled at 25,732.00, up 109.25 on Friday and 250.00 on the week

E-mini S&P and E-mini NQ futures retreated from the upper end of the range to start the week. Breadth was poor, although the SMH held against record highs, adding 1.13%, led by AVGO, NVDA, MU, and MSFT. Healthcare, communications, and consumer discretionary sectors were down the most, while financials also lost ground. We are watching rates closely ahead of tomorrow’s Fed policy decision. The 10-year has bumped up against 4.2%, rising for the third straight session, while the futures tested the September 25th low. The rise in yields has become a headwind to the near-term path higher for stocks.

Indices did rebound late in the session, and through the closing bell after President Trump posted to Truth Social, I have informed President Xi, of China, that the U.S. will allow NVDA to ship H200 products to customers in China…”

E-mini S&P and E-mini NQ futures quickly rejected the upper-end of the range on the opening bell, now defined as major three-star resistance in the S&P as 6886.25-6892.75 and in the E-mini NQ as 25,860-25,883. Support did build out before the late bump on Trump’s post, and those levels are defined below. Through today’s first hour we will be looking for stability at and above our Pivot and point of balance in order to neutralize yesterday’s wave of selling with those levels coming in at…