Fact Fridays by Dave Walker
ES Futures finally broke out the tight triangle we mention last week. Not so great news for investors posting a 1.2% decline on Tuesday. On Thursday as we tested a make or break level the bulls showed up to defend. We have tons of headlines that will provide volatility in the weeks to come. FOMC mins were release from last meeting is one fundamental reasons the market seen a 20 plus rally off the lows. Technically the chart below is what market technicians are monitoring.
ES- DAILY -TREND LINE
Very critical level below we can could drop 50 points before testing a key Support level. Today we tested 2140 a key level for bulls to regain if they want to get this edge back. As I’m writing this we rejected it. 2146 -2140 – RESISTANCE 2120 -2110 area is KEY SUPPORT. This week’s close is VITAL.
The dollar continues to strengthen on bets that the Feds will raise U.S interest’s rates in December. A strong dollar is putting pressure on commodities especially Gold. After that disastrous sell off gold has only traded sideways in a range. 1270 is the level to conquer to get the momentum flowing to the upside. If we break the recent lows look for 1220 to be tested.
The Treasury Dept. auction $20 billion of 10 year notes @ 1.793%.
The bond market has been under pressure lately. 30 year yields hit its highest since June up 2.51%. Bonds prices moves opposite of yields. Negative yields by the Bank of Japan and bond buying by the Central Bank; Traders and Investors should pay close attention to the bond market for the remained of the year.
Earning season is finally here. Many big names are posting this month. Goldman Sachs, Netflix and Microsoft are a few big names we will be paying close attention to next week. Expect movement in the futures markets based on these results as well as the individual stocks.
Dave The Facts Guy
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