– U.S. equity benchmarks held late afternoon lows for a change and mend has carried overnight.
– Fed Chair Powell spoke after the bell. His comments were not upbeat, but truthful, saying the Fed cannot guarantee a soft landing. He did shoot down the potential of a 75-bp hike in June or July.
– Global markets gained overnight, led by the Nikkei and Hang Seng.
– Light at the end of the tunnel for Shanghai lockdowns, but cases have risen in Beijing for each of last two days.
– China’s Loan and Financing growth for April plummets in dataset this morning.
– Samsung will raise the price of its semiconductors by 20%. See how chipmakers digest this today, they must be a leader.
– Musk puts Twitter deal “temporarily on hold”.
– U.S. Dollar Index has officially broken out.
– USDCNH sideways on day, but highest since September 2020
– U.S. 10-year yield slipped to a low of 2.81% yesterday, but inching higher this morning.
– VIX is at a 5-day low, check out yesterday’s Morning Express on why a VIX blowout is not necessary.
– VXN, Nasdaq volatility slipping after failed double top yesterday against January high.
– Fresh Michigan Consumer data for May is due at 9:00 am CT
– Minneapolis Fed President Kashkari speaks at 10:00 am CT, he is known to be dovish and his comments on at 2% neutral rate have been seen to buoy stocks. He is a voter in 2023.
– Cleveland Fed President Mester is a 2022 voter and speaks at 11:00 am CT. Her comments were less certain earlier in the week and highlighted the Fed’s challenges ahead, but reiterated 50-bp hikes.
E-mini S&P (June) / NQ (June)
S&P, yesterday’s close: Settled at 3927.25, down 3.00
NQ, yesterday’s close: Settled at 11,947.25, down 22.50
– The S&P made a new session low to come within 10 points of 3846, which is a 20% correction from highs, and the top end of our rare major four-star support.
– NQ made late session low by 4 points and held 50% retracement back to pandemic low.
– For a change, selling was abated late in the session and rally ensued, led by Tech.
– We are keeping a close eye on QQQ/XLP for a relative strength thrust to confirm follow through.
– S&P and NQ are trading out above yesterday morning’s early failed high, and this is a positive; continuing to do so will leave the bulls in the driver’s seat on the session.
– We will take a more Bullish view with the S&P and NQ holding out above major three-star supports at … Click here to get our (FULL) daily reports emailed to you!
Crude Oil (June)
Yesterday’s close: Settled at 106.13, up 0.42
– Strong and steady price action in Crude grinding back towards major 111.06-111.37 mark.
– Light at the end of the tunnel for Shanghai virus lockdowns helping underpin rally, aiming for mid-May.
– The stair climb on levels has worked terrific, look for major three-star support now at 104.80-105.08 to be line in sand holding renewed near-term uptrend.
– Bulls in driver’s seat on session and into next Tuesday’s option expiration as long as holding above.. Click here to get our (FULL) daily reports emailed to you!
Gold (June) / Silver (July)
Gold, yesterday’s close: Settled at 1824.6, down 29.1
Silver, yesterday’s close: Settled at 20.773, down 0.802
– Massive levels of support for both Gold and Silver have been violated.
– Downtrend is real as U.S. Dollar breaks out.
– Gold and Silver must hold next levels of support for any chance of a near-term rebound to begin repair, major three-star supports at … Click here to get our (FULL) daily reports emailed to you!