E-mini S&P (December)
Yesterday’s close: Settled at 3095.50, up 3.50
Fundamentals: What a resilient market. From domestic drama in Washington to a dissipating interim “Phase One” trade deal and we still have a fresh record closing high on our hands. On Tuesday, President Trump certainly left the market desiring more on trade, yet it held in. Amid stable inflation and dissipating odds of another Fed rate-cut through the first quarter, the market has held in. Maybe it’s the terrific earnings and the upbeat outlook for many individual stocks; Disney today is a great example, Apple is always another, or simply the banking sector in the second half of the year. Maybe it’s the seasonality or the slightly better global economic data. Whatever it might be, this market is resilient, and has not only proven doubters wrong all year long, it has proven doubters wrong for the better half of the last decade. Tonight, we look to a deluge of data from China at 8:00 pm CT that will set a tone for the back half of the week. From the U.S, we have weekly Jobless Claims and PPI at 7:30 am CT followed by Fed speak. Fed Governor Clarida and Chicago Fed President Evans speak at 8:10 am CT. NY Fed President Williams speaks at 11:00 am CT and St. Louis Fed President Bullard speaks at 11:20. Not to mention, Fed Chair Powell continues his terrifically soft landing in Washington at 10:00.
Technicals: First key support in each the S&P and NQ held perfectly today. Although price action remains strong, there is certainly overhead resistance. The best barometer heading into tomorrow will again be our pivots; settlement in the S&P and the same 8250-8261.50 in the NQ from yesterday. We have now added minor support in the S&P at 3086 and if price action remains constructive above these levels, we expect a fresh wave of record highs barring any new fundamental bombshells.