E-mini S&P 500 Futures (June)
Yesterday’s close: Settled at 2788.50, up 56.50.
Fundamentals: Weekly Jobless Claims and Flash PMIs are in focus this morning. U.S benchmarks snapped back yesterday from a poor Tuesday. There was a lot of green across the board and tech led the way (Facebook, Alphabet, Microsoft and Semiconductors). However, price action remained contained below technical resistance and this ups the ante on today’s tape. PMI data from Europe and the U.K early this morning was ugly and hit record lows; every single read was worse than expected. U.S Jobless Claims are due at 7:30 am CT and PMI data follows at 8:45 am CT. New Home Sales data is released at 9:00 am CT, Kansas City Fed Manufacturing at 10:00 a.m. and NY Fed President John Williams speaks at 1:00 pm. Intel reports after the bell. The record tally in unemployment (Jobless) claims is expected to continue adding another 4.2 million to a number already topping 22 million. Equity markets haven’t performed poorly on these release days, but luckily for bulls the data was accompanied by fresh measures or news from the Fed and Washington. All in all, we expect volatility to continue.
Ahead of an EU teleconference summit today seeking to unleash €2 trillion in stimulus, the ECB relaxed lending restrictions to facilitate money flowing through Italian banks as the nation’s debt is downgraded. The measures come as the bloc battles an impending recession due to the pandemic. Today, German Chancellor Merkel said Germany is still at the beginning of the crisis and the World Health Organization warned against complacency and lifting lockdowns.
Technicals: Despite yesterday’s strength, both the S&P 500 and NQ stayed contained below major 3-star resistance levels aligning with Monday’s settlements at 2806.50 and 8692. Each respective level held through the overnight, but our momentum indicators are rising and bringing steady support below the tape. For the S&P this comes in at 2783 and the NQ at 8610. Ultimately, the bears must pressure the tape below here in order to reinvigorate waves of weakness. To the downside, there’s strong support against yesterday’s intraday lows as seen in the levels below. Further support comes against Tuesday’s gap settlements of 2732 in the S&P and 8431.75 in the NQ, however, these are only key levels and the major 3-star support below there held Tuesday’s battle. We will continue to hold a cautiously bearish bias until a close out above 2806.50 and 8692.
Resistance: 2806.50***, 2833**, 2860.75-2870***
Support: 2781.25-2783**, 2762.50-2766.25**, 2752*, 2732**, 2709.25-2717.25***, 2613.25-2642****
E-mini Nasdaq-100 futures (June)
Resistance: 8692***, 8728**, 8819.25-8846**, 9000-9038***
Support: 8595-8610**, 8563.25*, 8509-8533.75**, 8426.50-8431.75**, 8303.25-8327.25***, 7995-8073.50****