Blue Line – Morning Express July 29th, 2021
What to Know Heading Into the FOMC
| – Federal Reserve left rates and policy unchanged. – Fed takeaways: * Unanimously voiced the economy has strengthened * Covid variants pose a risk to the recovery, forcing coined patience * Still, taper is nearing * Inflation is higher than their goals * Further progress needed on jobs; great next week report will create tightening pressures – Progress in Washington supporting risk-assets * Senate voted to work on $550 billion Infrastructure Bill, could vote to pass next week * Democrats bring a light at the end of the tunnel on budget – Chinese government proactively soothes investment banks and global investors; Hang Seng closed 6.3% from the low on the week – Facebook -3% after beating but cautioning with guidance. – PayPal -5% after missing on revenues. – Earnings deluge continues, Amazon after the bell – Robinhood IPOs, interestingly priced at low end of range and opens it to retail customers. Still, valued higher than competitors. Smoke and mirrors? – First look at Q2 GDP whiffed at 6.5% versus 8.5% – Jobless Claims higher than expected at 400,000 – Dreaded 7-year auction at noon CT. Massive supply coming in August. – U.S Dollar Index failed breakout at 93.00 and is now breaking down from a flag pattern Sign up for a Free Trial at Blue Line Futures to have our entire fundamental and technical outlook, actionable bias, and proprietary levels for the markets you trade emailed each morning. S&P (September) / NQ (Sept) – Strength on heels of Washington and China – S&P, NQ, Dow, all coiling at record highs; next move is coming. Momentum and direction has clearly been higher, but approach resolution cautiously. – NQ, trend line from May low aligns with Tuesday’s low at major three-star support 14,750-14,790. Added back stop support at 14,692-14,722. Break below here needed for health correction. – S&P line in the sand 4355.75-4359.50. Buyers have defended weakness in front of here. Bias: Neutral/Bullish S&P, yesterday’s close: Settled at 4393.75, down 0.75 Resistance: 4403-4405**, 4414.25-4416.75**, 4421-4429**, 4446*** Pivot: 4394 Support: 4377-4380**, 4364.75-4367.25**, 4355.75-4359.50***, 4341.50-4345** NQ, yeterday’s close: Settled at 15,011.50, up 63.75 Resistance: 15,040**, 15,098-15,134***, 15,206**, 15,271***, 15,336**, 15,547-15,593**** Pivot: 14,950-14,990 Support: 14,850-14,871***, 14,750-14,790***, 14,692-14,722*** Sign up for a Free Trial at Blue Line Futures to have our entire fundamental and technical outlook, actionable bias, and proprietary levels for the markets you trade emailed each morning. Crude Oil (September)Yesterday’s close: Settled at 72.39, up 0.74 – EIA data headline supportive, but in line with API Tuesday. – Refinery Utilization and Net Imports down WoW; aides draw in Gasoline – Traded out above big major three-star resistance at 72.64 overnight; level aligns July 14th gap and trend line from highs, remains critical on weekly close. – Bias: Neutral Resistance: 73.46**, 74.69-74.90*** Pivot: 72.64*** Support: 72.39-72.44**, 71.65-71.90**, 70.90-71.08**, 70-30-70.56***, 69.60-69.86*** Sign up for a Free Trial at Blue Line Futures to have our entire fundamental and technical outlook, actionable bias, and proprietary levels for the markets you trade emailed each morning. Gold (December) / Silver (Sept) – Gold’s hold of 1793-1796 floor through Fed was very bullish, still work to do at major three-star resistance at 1828-1835, do not chase if not already in. – Momentum indicator rising and will catch up with overnight floor at 1818.5; must hold to keep rally charged – Yesterday gap settlement at 1804.6; break below is failure – Silver faces rare major four-star resistance at 25.74-25.85; aligns trend line from June 11th, gap close July 16th, and last week’s high. – A move above last week’s high is an outside bullish reversal and could bring tailwinds to test $27 – Dollar Index breakdown and GDP miss supportive – Bias: Bullish/Neutral Gold, yesterday’s close: Settled at 1804.6, up 0.6 Resistance: 1834.5-1839***, 1854.6-1858.3*** Support: 1818.5**, 1810.9**, 1804.6***, 1793-1796*** Silver, yesterday’s close: Settled at 24.877, up 0.228 Resistance: 25.74-25.85****, 26.20**, 26.55-26.72***, 27.24*** Pivot 25.55 Support: 25.15**, 24.99-25.05**, 24.88***, 24.65*** |
You can sign up for a free trial here: https://www.bluelinefutures.com/free-trial
https://www.bluelinefutures.com
