Market Overview – Morning Express
– Virus derails travel plans in the U.S., more than 2800 flights cancelled due to staff shortages and weather issues.
– U.K. Prime Minister Johnson will not announce any new restrictions, after Omicron data shows low hospitalization rates.
– China begins disinfection in city of Xi’an, where cases were found midweek last week.
– China plans mass testing to combat fourth wave
– China announces new guidelines for companies to list publicly. Look for volatility to continue in China listed tech shares.
– U.K., Hong Kong, Australia, and others still on Christmas holiday.
– Quick take: U.S. benchmarks finished strongly Thursday ahead of the long holiday weekend and remain elevated. The S&P is within 10 points of a record high. On Thursday, Crude Oil traded to the highest since the November 26th, post-Thanksgiving Black Friday crash. Markets were all but closed Friday, Brent Crude Oil, on the ICE EU exchange, was open and lost nearly $1 as virus/airline news dented sentiment in a thinly traded market. NYMEX WTI, that we actively cover, ballparked similar loses to start the week but is showing signs of stability. Copper and Agriculture commodities traded firmly overnight. Considering this and the buoyance of equities, sentiment remains robust despite the virus spread. Market participants seem to be approaching cautiously but treating the heightened risks as manageable. Path of least resistance appears to be higher.
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E-mini S&P (March) / NQ (March)
S&P, yesterday’s close: Settled at 4715.75, up 29.75 on Friday and 105.75 on the week
NQ, yesterday’s close: Settled at 16,299.00, up 129.25 on Friday and 511.00 on the week
– Record highs in reach, but do not ignore resistance.
– Less concerned about record in S&P, more about rare major four-star ceiling in NQ
– Price action in NQ so far above trend line at 16,350 area.
– Trend line resistance in Dow at 36,050
– Bulls in the driver’s seat with S&P holding above major three-star support at … Click here to get our (FULL) daily reports emailed to you!
Crude Oil (February)
Yesterday’s close: Settled at 73.79, up 1.03 on Friday and 3.07 on the week
– Price action rebounding from holiday hit amid virus fears denting travel and thus demand
– Risk environment aside from energy has been buoyant and underpinning favorable sentiment.
– Friday’s settlement was a breakout above major three-star resistance at 72.93-73.13.
– The failure from Brent ICE EU brought WTI down Sunday night, but a rebound that can hold will exude strong bullishness.
– Look for previous ceiling as our Pivot and to bring point of balance at 72.93-73.13
– Failure does leave damage overhead and new major three-star resistance at … Click here to get our (FULL) daily reports emailed to you!
Gold (February) / Silver (March)
Gold, yesterday’s close: Settled at 1811.7, up 9.5 on Friday and 6.8 on the week
Silver, yesterday’s close: Settled at 22.94, up 0.121 on Friday and 0.407 on the week
– Strong close on Friday pinned each Gold and Silver at first resistance
– Extending range higher does not mean they are in the clear. Tough road to climb given November failure.
– However, this is a great start to bullish seasonality.
– Whipsaw on intraday 7:00-7:20 CT open, may have helped define a floor.
– Bulls in driver’s seat while holding out above … Click here to get our (FULL) daily reports emailed to you!
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