We remain overall Bullish in Bias in this bull market, but there is no reason not to be prudent after such a fantastic start to the year and carry from the fourth quarter, states Bill Baruch of BlueLineFutures.com.
E-mini S&P (March) / E-mini NQ (March)
S&P, yesterday’s close: Settled at 4898.00, up 3.00
NQ, yesterday’s close: Settled at 17,621.00, up 89.75
Was yesterday the beginning of a blow-off top? While we have said a rotation from Tech to Healthcare, Financials, and Industrials will take place at some point, it is our belief it cannot until a blow-off top within the leading asset class. Furthermore, we want to be clear: a rotation does not need to last more than a month or two. Looking ahead to a massive week next week between earnings, the Fed, and Nonfarm Payrolls, we believe it is time to keep trades short and tight in risk. Do not miss Blue Line Futures and Blue Line Capital President and CIO live from the NYSE on the CNBC Halftime Report today at 11:00 am CT, for the hour, where he will cover all of this and more!
Bias: Neutral/Bullish
Resistance: 4904.75, 4909-4911.25, 4918.25-4919.75, 4927.75-4933.25, 4981-5000
Pivot: 4895.75-4898.25
Support: 4889.25, 4881-4884, 4873.25-4875.25, 4869.50, 4859.75-4861.75, 4845, 4836.50-4841.50, 4825.50-4826, 4815.75-4817, 4808.50-4811.75
NQ (March)
Resistance: 17,679-17,695, 17,765-17,794, 17,996-18,000
Pivot: 17,621-17,637
Support: 17,585, 17,531-17,533, 17,488-17,497, 17,438, 17,371-17,409, 17,241-17,245, 17,166-17,192, 17,095-17,111
Crude Oil (March)
Yesterday’s close: Settled at 75.09, up 0.72
Crude Oil futures have now decisively breached the .382 retracement back to the September high at 75.31, and this encourages us to hold a more Bullish Bias while trading out above major three-star support aligning with yesterday’s settlement at 74.83-75.15. However, we cannot ignore the market trading into a thick area of resistance aligning with the high volume reversal on November 30th, creating significant headwinds.
Bias: Bullish/Neutral
Resistance: 76.31-76.71, 77.48-77.98, 79.57-79.65
Pivot: 75.71-75.83
Support: 75.31-75.46, 74.83-75.09, 74.49-74.63, 73.94, 73.40, 72.99-73.28, 72.10-72.27, 71.25-71.52
Gold (February) / Silver (March)
Gold, yesterday’s close: Settled 2016.0, down 9.8
Silver, yesterday’s close: Settled at 22.889, up 0.427
Gold and Silver have played an exhausting game of ‘hot potato’ where one takes a bludgeoning while the other looks on. Given December's volatility, we look to today’s February option expiration, which took on significant volume, as a moment that could help normalize this trade. Furthermore, whereas we have warned that melt-ups on prior options and futures expiration as creating near-term tops due to the roll premium, this expiration may be the opposite, with liquidation front-running the calendar. We remain cautiously Bullish from a fundamental perspective, although the technical landscape is much less desirable.
Bias: Neutral/Bullish
Resistance: 2019.4-2021.6, 2024-2025.7, 2032.1, 2039.3-2043.3, 2048.9-2051.4, 2062.4-2067.3
Pivot: 2032
Support: 2004.6-2009.1, 1987.9-1997.3
Silver (March)
Resistance: 22.95-23.05, 23.23, 23.33 23.68-23.76
Pivot: 22.88
Support: 22.74-22.78, 22.58-22.63, 22.40-22.46, 22.26, 22.05-22.16, 21.75-21.89
Learn more about Bill Baruch at Blue Line Futures.