Market Overview – Morning Express
- * The lumpy data continues with a strong slate this morning.
- * Initial Jobless Claims at 242k versus 254k expected, and Continuing Claims at 1.799 million, breaking 1.8 million for the first time since March 30th.
- * Fresh May Philly Fed Manufacturing was less-worse than expected at -10.4 versus -19.8, and up from -31.3 in April. On Monday NY Empire State Manufacturing was -31.8 versus -3.7 expected, crashing from +10.8 in April.
- * Fed Speak continues, Fed Governor Jefferson is due at 8:00 am CT, he last said “little progress has been made on inflation” and it remains too high. Dallas Fed President Logan speaks at 9:00 am CT. Both are voters, keep an eye out for others.
- Logan’s prepared remarks, “the data does not support skipping a rate hike.”
- * Debt ceiling talks continue, we believe a deal has been struck and it is political posturing at this point, so each side appears to be taking the hardest line to appease colleagues and constituents.
E-mini S&P (June) / NQ (June)
S&P, yesterday’s close: Settled at 4171.50, up 48.50
NQ, yesterday’s close: Settled at 13,643.50, up 160.25
The E-mini NQ continues to trade in breakout mode and has set a new high for six of the last seven sessions (including today). However, the E-mini S&P ran into a wall of major three-star resistance that coincided with better economic data this morning. The strong data has revved up the U.S. Dollar and yields, weighing on all indices ahead of the opening bell. If the tape were to remain the most constructive, it would hold out above first key supports, highlighted below. In the case of added weakness, it would be crucial for the E-mini S&P and E-mini NQ to hold and respond to major three-star supports at … Click here to get our (FULL) daily reports emailed to you!
Crude Oil (June)
Yesterday’s close: Settled at 72.89, up 2.05
Yesterday’s EIA report was not headline bullish, but Crude Oil gained 2.78%. The White House released another 2.4 mb from the SPR which slightly offset the headline build in Crude of 5.04 mb versus -0.92 mb. With the market aware the White House will reverse course on the SPR release, the release was removed within some forecasting models. Additionally, comments from Russian President Putin yesterday morning on output cuts helped spark positive momentum. Still, price action has not been able to clear rare major four-star resistance, highlighted below. Today’s pullback would be the most constructive holding first key support at … Click here to get our (FULL) daily reports emailed to you!
Gold (June) / Silver (July)
Gold, yesterday’s close: Settled at 1984.9, down 8.1
Silver, yesterday’s close: Settled at 23.897, up 0.004
Gold broke through a floor of support yesterday at 1982.3-1986.9, previously a rare major four-star support level, now major three-star resistance. This neutralizes Gold’s trend and arguably turns it bearish in the very near-term, something Silver did at the end of last week. The door is open to our first downside targets in Gold and Silver at … Click here to get our (FULL) daily reports emailed to you!
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