E-mini S&P (December)
Yesterday's close: Settled at 3092, up 4.50
Fundamentals: Both the S&P and NQ futures set fresh record highs ahead of President Trump’s address at the Economic Club of New York. However, his comments lacked the positive jawboning on U.S-China trade that was expected and price action dissipated into the afternoon. The President did make sure to criticize the Fed’s too hawkish of policy. Ironically, Philadelphia Fed President Harker was speaking at the same time saying that he did not support the most recent cut and how the Fed should stand pat measuring the effects of the policy adjustments. Harker’s comments are important as he is a 2020 voter. Minneapolis Fed President Kashkari, also a 2020 voter, speaks at 5:00 pm CT tonight. Still, equity markets held ground through the session and finished on a strong note. Wednesday’s economic calendar will prove pivotal with U.S CPI due at 7:30 am CT followed by Fed Chair Powell’s Congressional testimony at 10:00 am CT.
Technicals: Price action stretched to a fresh record high in each the S&P and NQ, but key resistance in the S&P at 3100 and major three-star resistance in the NQ at 8300 kept the rally in check. Upon a wave of selling, our pivot levels for Tuesday’s session ultimately held extremely well for each and this allowed the bulls to step in for a firm close. Heading into Wednesday, the pivot levels are a bit higher and for the NQ it is our major three-star level at 8250-8261.50 given that the NQ settled above here at 8275. It would be very constructive for the bulls if price action holds firmly at or above these levels through the overnight and into tomorrow morning’s opening bell. In a larger scale, the line in the sand to the downside remains major three-star support at 3063.25-3069.25 in the S&P and 8150-8179.25 in the NQ; a break below here would encourage a strong wave of selling. 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