Can the Rally Continue?
E-mini S&P 500 Futures CME_MINI_DL:ES1!
Blue_Line_Futures
E-mini S&P (June) / E-mini NQ (June)
S&P, last week’s close: Settled at 5154.75, up 63.25 on Friday and 23.25 on the week
NQ, last week’s close: Settled at 18,000.75, up 351.00 on Friday and 155.00 on the week
E-mini S&P and E-mini NQ futures are pointing higher on the heels of a strong finish to last week, supported by a strong earnings report from Apple and softer economic data Thursday night into Friday’s close. Midweek, Fed Chair Powell and committee put to rest the possibility of a rate hike and sent a message by lowering the cap on Treasuries rolling off the Fed’s balance sheet from $60 billion per month down to $25 billion. Although there are some budding concerns for the consumer stoked by Starbucks’ earnings, this may be just what the Fed wanted, while earnings from not only Apple, but Amazon earlier in the week was also a bullish factor.
To start the week, the CME FedWatch Tool is showing the odds of two rate cuts this year with a 61.9% probability.
Price action in the E-mini S&P is closing in on a big level of resistance at 5192.25-5197.25, and we view a close above here as neutralizing the selling that kicked in from April 12-15th. We view a similar landmark for the E-mini NQ at 18,179. Given the aforementioned, we have taken a more Bullish Bias to start the week as long as price action holds major three-star support in the E-mini S&P at 5154.74-5157 and the E-mini NQ at 17,893-17,911.
Bias: Bullish/Neutral
Resistance: 5185.50*, 5192.25-5197.25***, 5200.75-5201.75*, 5213-5218.75***, 5243.25-5246.25***
Pivot: 5166.75-5167
Support: 5154.75-5157***, 5145.50-5148.50***, 5137.25*, 5126.75-5127.75**, 5118.75**, 5104.50-5109.25***, 5100.75**, 5087-5091.50****
NQ (June)
Resistance: 18,053-18,099****, 18,179***, 18,223-18,227**, 18,326-18,339***
Pivot: 18,000
Support: 17,949-17,962**, 17,893-17,911***, 17,805-17,808*, 17,743-17,793*** 17,649-17,686****
Micro Bitcoin (May)
Last week’s close: Settled at 62,590, up 2,825 on Friday and down 1,710 on the week
Bias: Neutral
Resistance: 65,335-65,435***, 66,552***, 67,155-67,965***, 68,829**, 71,625-71,646***
Pivot: 64,275-64,750
Support: 63,550-63,805**, 62,210-62,590***, 60,704-61,116***,59,765**, 56,472-57,355***, 55,000-55,290***, 52,240***, 47,000****
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Disclaimers:
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*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
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