Market Overview – Morning Express
Market Overview – Morning Express
E-mini S&P (June) / NQ (June)
S&P, yesterday’s close: Settled at 4215.00, up 1.75
NQ, yesterday’s close: Settled at 14,396.75, up 64.25
After a thrilling start to yesterday’s session, driven by E-mini NQ leadership, price action has been sluggish since the opening bell. Weak economic data from China last night certainly did not help, and although the U.S. Dollar has strengthened, Treasury rates are working a bit lower. Given last week’s magnificent run, as we always say, the market must digest the move. What becomes important is digesting such in a constructive manner. We remain cautiously Bullish, even at these levels. However, our more Bullish Bias required E-mini S&P futures to hold the 4231.50 breakout area. E-mini NQ futures, the leader, is testing into what was rare major four-star support yesterday at 14,298-14,367, but has been dialed down to major three-star given the multiple tests. If price action remains soft, it becomes paramount to see sectors other than Tech respond to support, and this means E-mini S&P futures holding major three-star support at … Click here to get our (FULL) daily reports emailed to you!
Crude Oil (July)
Yesterday’s close: Settled at 69.46, down 3.21.
Yesterday’s break below rare major four-star support at 70.58-71.05 could only Neutralize our Bias in the short-term. Yesterday’s breakdown found selling pressures as hopes of an OPEC+ production cut continued to dissipate. Those pressures were reinvigorated last night after China’s poor Manufacturing PMI data. Although global growth fears could keep a production cut on the table, the CME’s OPEC Watch Tool is signaling a 50/50 probability the cartel either leaves production unchanged or raises it due to the shift in the Options Skew and the Implied Volatility of Puts. However, we find it very unlikely OPEC+ would actually increase production and this could create opportunity across the Options Curve. From a price perspective, we do have major three-star support at … Click here to get our (FULL) daily reports emailed to you!
Gold (August) / Silver (July)
Gold, yesterday’s close: Settled at 1977.1, up 14.0
Silver, yesterday’s close: Settled at 23.239, down 0.121
Gold is showing signs of wanting to repair some of the recent damage, helping to pull Silver out of its hole, though each has a think headwind of resistance before a clear path higher is paved. China’s PMI data last night certainly made the road a more difficult one, lifting the U.S. Dollar versus the Chinese Yuan to the highest level since November 30th. However, Treasuries are responding to the slower global growth outlook thus far, as well as a relief rally on the heels of a potential debt ceiling deal. This sets the stage for Gold, it must clear major three-star resistance at … Click here to get our (FULL) daily reports emailed to you!
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