E-minis Surge Past 7000 as Tech Momentum Accelerates

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

S&P, yesterday’s close: Settled at 7004.75, up 82.00

NQ, yesterday’s close: Settled at 25,996.75, up 453.25

Gains from E-mini S&P and E-mini NQ futures on Tuesday topped those on Monday, as momentum across the technology space held strong. Although all sectors but staples, materials, and energy were positive, only communication, discretionary, and technology outperformed the S&P. Yes, it was a Mag 7 revival with META, AMZN, NVDA, and TSLA leading the way, all gaining more than 3%. It is also notable that MSFT added 2.3%, ORCL +4.7%, and MU +9.2%.

Risk sentiment snagged early this morning after Iran threatened retaliation if the U.S. blockade of the Strait continues. However, things rebounded when the AP reported mediators are close to extending the ceasefire.

Yesterday, we said, “strength from yesterday’s (Monday’s) reversal cannot be ignored, and a path higher is paved with continued price action above support aligning with yesterday’s settlement, and our Pivot and point of balance at 6921.50-6928.50 in the E-mini S&P and 25,605 in the E-mini NQ.” Price action took off from the opening bell yesterday, which does leave a gap from Monday’s close, and something we want to be mindful of in the case of a pullback. Although a breather, and healthy pullback is a plausible scenario, momentum is strong, and will continue to be so if price action holds above our Pivot and point of balance through the opening hour at…..