Market Overview – Morning Express
– Breaking: S&P 500 achieves Blue Line Futures’ 12-month rolling target of 4620.
– Do not miss our weekly Top Three Things to Watch this Week
– Federal Reserve begins two-day policy meeting tomorrow, concludes with a policy announcement Wednesday at 1:00 pm CT. Expected to begin tapering bond purchases.
– China’s state read on Manufacturing PMI, released Saturday evening, contracted in October for the second month in a row at 49.2. Private Caixin read, released on Sunday evening, expanded at 50.6.
– German Retail Sales for September missed this morning at -2.5% MoM versus +0.6% expected.
– Closely watched ISM Manufacturing PMI from the U.S. for October is due at 9:00 am CT. Final HIS Manufacturing PMI out before at 8:45 am CT.
– Spending bill with price tag of $1.75 trillion gains momentum in Washington.
– OPEC+ meeting Thursday in focus.
E-mini S&P (December) / NQ (December)
The S&P500, yesterday’s close: Settled at 4597, up 9.50
NQ, yesterday’s close: Settled at 15,838.50, up 73.75
– S&P achieved longer-term rolling 12-month upside target at 4620, a full 100% measured move defined by the range from the February 2020 highs to the March 2020 lows. Added resistance with previously broken trend line (highlighted above).
– In both S&P and NQ, Friday’s settlement aligns with our momentum indicators to create first key support.
– Tremendous chop last week due to mega-cap earnings, buy-the-dip in full force.
– Chop to continue with heavy slate of economic data, earnings and Federal Reserve taper announcement.
– Trend line resistance in the Russell still intact.
– Although target hit, potential new bull leg developing defined by new floor.
– New floor in both the S&P and NQ at … 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 (December)
Yesterday’s close: Settled at 83.57, up 0.76
– OPEC+ meeting Thursday in focus. Cartel likely to keep pace of increases at 400,000 bpd; producers have been over-compliant and struggled to bring back production, Joint Technical Committee lowered 2021 forecast by 120,000 bpd, Iran wants back to nuclear talks.
– President Biden has called for OPEC+ to step up.
– Officials are still skeptical about Iran’s seriousness.
– Commitment of Traders; Managed Money net-long position fell from 301k to 291k in week ending October 26th.
– Commitment of Traders; Producers back net-short.
– Rare major four-star resistance still stands at 84.60-85.00
– Market remains in consolidation pattern, digesting the recent run. Reaffirmed a floor of support at … 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 (December)
Gold, yesterday’s close: Settled at 1783.9, down 18.7
Silver, yesterday’s close: Settled at 23.949, down 0.171
– Despite breach of major three-star support on Friday, Gold and Silver did not close below, paving the way for continued consolidation.
– U.S. Dollar pullback from swing highs has underpinned metals at major three-star supports.
– Bond market remains elevated and flattening yield curve exudes slower growth
– Could be a make-or-break week for Gold and Silver in the near to intermediate-term, heavy economic calendar and FOMC.
– This morning’s rebound is tested resistance created through last week, defined by key levels in notes below …. 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.
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