E-mini S&P (December)
Yesterday's close: Settled at 3005.75, up 11.25
Fundamentals: Earnings and trade optimism have lifted the S&P back to highs of the week. Although it is flirting above a crucial marker at 3008.50, the NQ trails slightly in relevance to highs set Tuesday and last Thursday. The Dow is trading nearly 1% from last Thursday’s high given weakness during that span in companies ranging from Boeing, the largest component in the price-weighted index, to Nike. This morning, Comcast beat earnings estimates headlined by internet subscriber growth. Southwest was another strong story, rising ticket prices and strong travel demand helped offset the hit taken from Boeing’s 737 Max grounding. 3M underwhelmed and cut forecasts, but the stock is hanging in. Twitter is the biggest loser of the day with the stock falling 20% after an all-around weak third quarter. American Airlines has slipped into the red after reporting better earnings but missing on revenue. After the bell, we look to Amazon, Intel, and Visa.
The ECB left policy unchanged this morning as expected. President Mario Draghi takes the podium at 7:30 am CT in what is his last meeting at the helm. He will certainly field questions on his outlook and this will impact markets broadly. Durable Goods data missed across the board, echoing deteriorating growth just as October Eurozone Flash PMIs did this morning which also came in below expectations. We look to U.S Flash PMIs at 8:45 am CT.
Technicals: The stock market broadly has done everything right this week. Strong support levels have held upon shallow pullbacks. Now, it just needs to achieve the constructive close we have been referencing since last week. This would be the S&P decisively above 3008.50 and the NQ decisively above 7948.25-7958.50. We believe doing such would create a bit of a melt-up factor bringing each to not only record highs but targeting 3046.50-3057.75 in the S&P and 8150-8179.25 in the NQ... Please sign up for a Free Trial at Blue Line Futures to have our entire technical outlook, actionable bias and proprietary levels emailed to you each morning