Stock futures received a nice pop in the pre-market session following the 8:30 release of the Employment Situation due to some hot (above expectation) readings. The Fed can’t take back Wednesday’s rate cut, or at least is unlikely to do so anytime soon so the market has the best of both worlds this week: Another 1/4 rate cut plus better than expected jobs data although from the posture of the charts, I doubt this morning’s euphoria will be long-lived.
/ES & /NQ continue to ride up within their respective rising wedge following yesterday’s successful test of the /ES 3020 & /NQ 8040 support levels with a sell signal still pending a break below both of those levels. The 60-minute charts below.
-
- ES 60m Nov 1st
-
- NQ 60m Nov 1st
Concurrent with the pop in the stock futures, the risk-off assets gold & Treasury bonds have pulled back some although the pullback was technically-induced as well. /ZB (30-yr T-bond futures) has run into the 161’216 R level while reaching the extreme overbought 84 level on the 60m RSI 9 which is typically followed by pullbacks while /GC just hit the extreme 88+ overbought level on the 60m RSI 9 which has typically been followed by pullbacks. 60-minute charts below.
-
- ZB 60m Nov 1st
-
- GC 60m Nov 1st
/CL crude has been moving higher since reversing off the 53.79 support yesterday with the bullish divergences still intact & appears likely to continue to at least the 55.54 area.
CL 60m Nov 1st
/NG natural gas bear flagged last night followed by a break below the flag & another thrust down as was expected yesterday. With the PPO & RSI starting to turn back up at very low levels, that could be it for the correction although one more thrust down to the 2.562 and/or uptrend line support is just as likely IMO. With 50/50 odds on either scenario, the R/R is not very favorable for new longs or shorts on /NG right now & those still short /NG or DGAZ might consider tightening up stops.
NG 60m Nov 1st
/KC coffee continues to stair-step higher although with divergences continuing to build which increases the odds of another pullback/correction in /KC or JO (coffee ETN) if/when the next target of 1.0295 is hit soon.
KC 60m Nov 1st