Rebound Continues, but Indices Struggle to Clear Resistance

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

S&P, yesterday’s close: Settled at 6945.00, up 35.00

NQ, yesterday’s close: Settled at 25,658.25, up 187.25

E-mini S&P and E-mini NQ futures continued their rebound into midday yesterday, but have stalled at resistance near last Friday’s close, in which the tape gapped down from Sunday night. The E-mini S&P traded to a high of 6969 yesterday, just shy of the 6976 level, and the E-mini NQ has chopped around the 26,689 mark, before retreating yesterday and settling right at our Pivot and point of balance.

Strength was broad yesterday, led by names like META, TSLA, and MU. Software and financials also bounced back, but earnings from GE weighed on industrials, and ABT threw cold water over healthcare. After the bell, INTC topped Q4 estimates, but the current Q1 guidance was soft due to a lack of supplies to meet seasonal demand, which hit the stock by as much as 13%. However, AMD is +2.5% on the back of the INTC news and after analysts reaffirmed their bullish outlook. It was also reported that China told BABA and tech firms they can prepare for orders of NVDA H200 chips.

Price action is soft ahead of the opening bell, after again retreating from a test of yesterday’s high overnight. It will be crucial for the indices to regain our Pivot and point of balance, detailed below, which will help reinvigorate the tape through the first hour. As it unfolds, we must see a constructive response to first support at