Where is the S&P Target on Breakout?
E-mini S&P (June) / E-mini NQ (June)
S&P, yesterday’s close: Settled at 5328.00, down 17.25
NQ, yesterday’s close: Settled at 18,786.75, down 12.50
All eyes were on NVDA’s earnings report yesterday, but the E-mini NQ was already up more than 7% on the month. Despite that strength and a new record high, price action became stagnant in the week leading into this report. So much so that momentum and breadth began showing signs of exhaustion. A beat and raise from the market’s most powerful engine has revved indices, slinging the E-mini S&P and E-mini NQ further into fresh record territory and confirming what began a week ago: a breakout above the March high.
If the E-mini S&P and E-mini NQ were about to embark on a new bull leg, it is imperative for our first major three-star support levels, aligning with yesterday’s settlement, to hold. Furthermore, the E-mini S&P tested what we have had as rare major four-star support through the FOMC Minutes and again upon NVDA’s release. This level was also tested and held last Friday and brings a line in the sand defining the next bull leg at 5303.25-5308.50.
So, where to next? Two weeks ago, we wrote here that we believed the market began to confirm a bottom was created in April and through the first couple of days of May. We also expressed our upside target for this wave aligns multiple technical indicators with a Fibonacci retracement and a 10% run to 5459.75-5474.25. Today, we will use this moment to reiterate this target.
Bias: Bullish
Resistance: 5365.50-5370.50*, 5391.75**, 5400-5420.25***, 5459.75-5474.25***
Pivot: 5349
Support: 5343.25-5345.25**, 5334-5336.75**, 5328***, 5319.50**, 5303.25-5308.50****
NQ (June)
Resistance: 18,977**, 19,085***, 19,319***
Pivot: 18,891
Support: 18,786-18,825****, 18,715-18,732**, 18,678-18,691***, 18,620-18,635****
*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.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
S&P, yesterday’s close: Settled at 5328.00, down 17.25
NQ, yesterday’s close: Settled at 18,786.75, down 12.50
All eyes were on NVDA’s earnings report yesterday, but the E-mini NQ was already up more than 7% on the month. Despite that strength and a new record high, price action became stagnant in the week leading into this report. So much so that momentum and breadth began showing signs of exhaustion. A beat and raise from the market’s most powerful engine has revved indices, slinging the E-mini S&P and E-mini NQ further into fresh record territory and confirming what began a week ago: a breakout above the March high.
If the E-mini S&P and E-mini NQ were about to embark on a new bull leg, it is imperative for our first major three-star support levels, aligning with yesterday’s settlement, to hold. Furthermore, the E-mini S&P tested what we have had as rare major four-star support through the FOMC Minutes and again upon NVDA’s release. This level was also tested and held last Friday and brings a line in the sand defining the next bull leg at 5303.25-5308.50.
So, where to next? Two weeks ago, we wrote here that we believed the market began to confirm a bottom was created in April and through the first couple of days of May. We also expressed our upside target for this wave aligns multiple technical indicators with a Fibonacci retracement and a 10% run to 5459.75-5474.25. Today, we will use this moment to reiterate this target.
Bias: Bullish
Resistance: 5365.50-5370.50*, 5391.75**, 5400-5420.25***, 5459.75-5474.25***
Pivot: 5349
Support: 5343.25-5345.25**, 5334-5336.75**, 5328***, 5319.50**, 5303.25-5308.50****
NQ (June)
Resistance: 18,977**, 19,085***, 19,319***
Pivot: 18,891
Support: 18,786-18,825****, 18,715-18,732**, 18,678-18,691***, 18,620-18,635****
*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.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
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