– We have been highlighting rising Covid cases across Europe. Risk-assets turned sharply lower early this morning after Austria announced a full lockdown and Germany’s health minister wouldn’t rule it out. Germany is the union’s largest economy. Cases rose by a record 68k on Wednesday and the 7-day moving average at 45k matches the previous single day record from back in January.
– Euro trading below 1.13 and Dollar Index above 96, for the first time since July 2020 (outside of spike Tuesday night). Euro Stoxx -1% and DAX -0.6%
– House is expected to vote today on President Biden’s $2 trillion social spending bill.
– 30-year Bond futures rip to highest since Friday on lockdown news. Yield back to critical 1.90% and unchanged on the week after rallying to a high of 2.048%.
– Comments from Fed Governor Waller at 9:45 am CT and Fed Vice-Chair Clarida due at 11:15 am. Come after more hawkish comments from permanent voting NY Fed President Williams yesterday.
– Probability of a Fed hike by June still at 53.3%.
– Fresh record highs overnight in the S&P and NQ. However, S&P has retreated almost 1% from high of 4723.
– Energy, Materials and Financials will be the hardest hit sectors as lockdown stocks and Tech take the lead.
– Cyclical heavy Russell 2000 down 3.3% on the week and back-testing trend line. Shown in chart above.
E-mini S&P (December) / NQ (December)
NQ, yesterday’s close: Settled at 16,481.25, up 169.75
– Tech continues to lead higher, as we have been discussing. NQ never turned red after lockdown news. New floor developing at 16,392-16,449?
– With S&P reversal from fresh record, technical landscape very similar to yesterday with Pivot and point of balance at 4692.50.
– Momentum indicator is now overhead and aligning at 4701-4705; a decisive move back above here on the session would likely have legs.
– Strong first key support at 4684.75-4685.50; price action responding to this so far.
– Bulls in the driver’s seat across all timeframes until break below major three-star support at … Click here to get our (FULL) daily reports emailed to you!
Yesterday’s close: Settled at 78.41, up 0.86
– We have been extremely cautious the energy sector of late, explicitly detailing headwinds from rising Covid cases and the White House. Furthering that positioning with patience into rare major four-star support at 74.96-75.12 should prove to be a great long-term buy.
– We have maintained a more Bullish Bias due to the strength of the uptrend and our longer-term upside expectations.
– Rally from yesterday failed perfectly at major three-star resistance at Click here to get our (FULL) daily reports emailed to you!
Gold (December) / Silver (December)
Gold, yesterday’s close: Settled at 1870.2, up 16.1
Silver, yesterday’s close: Settled at 25.167, up 0.223
– Gold and Silver holding a bid on safe haven tailwinds from lockdowns. However, U.S. Dollar strength a headwind.
– Consolidation has been very impressive this week
– However, continued action below our momentum indicators, detailed below, will allow for sellers to press into strong levels of support.
– A close above key resistance at …Click here to get our (FULL) daily reports emailed to you!
You can sign up for a free trial here: https://www.bluelinefutures.com/free-trial