E-mini S&P 500 Futures (June): Settled at 2953, up 16.00 on Friday and up 106.50 on the week.
E-mini Nasdaq-100 Futures (June): Settled at 9406.25, up 50.50 on Friday and up 309.75 on the week
Risk-assets are surging on the heels of the long Memorial Day weekend. Signs of normalization and the worst of Covid-19 being behind us has fueled the S&P 500 Index out above 3000 and to the highest level since March 6. The Nasdaq-100 index is at the highest level since February 21, the day after it set a fresh record. Many state and local governments domestically began loosening restrictions ahead of the holiday weekend. Price action is queuing off optimism and signs of pent-up demand. Abroad, Japan ended its national state of emergency while Germany is expected to lift travel warnings and Spain would reopen for tourism after July. The U.K. is also expected to begin normalizing. The U.S. dollar, which has acted as a safe-haven is broadly lower against foreign currencies. Still, the World Health Organization, after mishandling the early stages of the outbreak, warned of a second wave.
Over the last week, closely watched indicators from Germany signal better expectations for the economy over the next 6 months, however, barometers measuring current conditions lagged expectations. In essence, this describes the run equity markets have pieced together.
From the U.S today, we look to the Case-Shiller Home Price Index at 8:00 am CT followed by Consumer Confidence for May at 9:00 am CT. In the week ahead, the U.S Treasury will unleash another load of supply (2-yYear Notes today), tomorrow the Federal Reserve releases their Beige Book, Wednesday we get April Durable Goods along with the second look at U.S. Q1 GDP and Friday is the Fed’s preferred inflation indicator.
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