Levels To Watch In The Futures Markets Today

The following originally appeared on Blue Line Futures. For specific technical levels, sign up for a free trial.

E-mini S&P (June)

Yesterday’s close: Settled at 2722.75

Fundamentals: Yesterday’s bludgeoning came to a quick end just ahead of the close and against the second major three-star support on the day. The S&P lost more than 2% on its low of 2697.25, but pared losses to settle down only 1.2%. Tech stocks led the way lower and the NQ lost more than 3% on its low before clawing back to finish down 1.8% on the session. A solid finish yesterday coupled with a quiet and steady overnight has laid the groundwork for a “Turnaround-Tuesday” and a “Fed-Drift” barring any new political developments; cliché yes, but also high probability. PPI data out of the U.K. and Sentiment data out of Germany and the Eurozone all missed the mark this morning. Today’s economic calendar out of the U.S is bare as traders eye tomorrow’s FOMC Meeting. With tech taking such a bath and Facebook still under pressure, it will be important to keep an eye out for new leadership during this phase. If one emerges, we could see a strong finish to the week.

Crude Oil (April)

Yesterday’s close: Settled at 62.13

Fundamentals: Crude Oil fell under pressure late morning yesterday taking a cue from equity markets after struggling to get out above resistance from Friday. Price action traded to a short-lived low of 61.45 before recovering to finish the session back above the $62 mark. A weaker Dollar yesterday also helped lift Oil late in the session. Tension between Saudi Arabia and Iran have helped drive price action out above Friday’s high ahead of inventory data later today.

As a meeting between President Trump and the Saudi Crown Prince comes into focus, so does the Iran nuclear deal. Taking Iran production off the market would send prices higher quickly, at least in the very immediate term. Of course, Saudi is sticking to the production deal to keep prices elevated and balance supply with an eye on their IPO. Could we see the U.S and Saudi team up to remove Iran supply which opens the door for Saudi to increase theirs. Also adding fuel is reduced production from Venezuela remaining in the headlines. Traders do want to keep an eye on the Dollar as tomorrow’s FOMC Meeting comes into the picture, it has recovered much of yesterday’s losses on weak data out of Europe.

Gold (April)

Yesterday’s close: Settled at 1317.8

Fundamentals: Safe haven buyers showed up yesterday amidst the bloodbath in equity markets. Ironically, the buying also happened once major three-star support was achieved. The Dollar is strengthening this morning on the heels of poor PPI data from the U.K and Sentiment data from Germany and the Eurozone. There is no major economic data out of the U.S today as traders ready for tomorrow’s FOMC Meeting. We discussed our thoughts on this meeting Sunday in our Tradable Events this Week.

Natural Gas (April)

Yesterday’s close: Settled at 2.651

Fundamentals: Price action sold off sharply yesterday morning as the focus is shifting from inventory draws and to building season. This comes regardless of the massive snow-dump expected on the East Coast. Remember though, when this comes plants and factories reduce their load which does not draw supply as much. As of now, storage estimates have remained steady for the last few sessions.

10-year (June)

Yesterday’s close: Settled at 120’125

Fundamentals: Price action opened today’s session last night 5 ticks away from settlement. It becomes ironic how important the technicals are. While the 10-year failed to settle out above the 120’14 level, another safe-haven asset in Gold failed to get out above its first key resistance. Most importantly, the S&P and NQ both held crucial major three-star support levels. While the catalyst very fundamental yesterday, the reversal was about as technical as it could be. There is no data out of the U.S today ahead of tomorrow’s FOMC Meeting.