E-mini S&P & NQ Futures Eye Breakout as Tech Strength Leads the Charge

E-mini S&P (March) / E-mini NQ (March)

S&P, yesterday’s close: Settled at 6132.00, down 3.25 on Friday and up 82.50 on the week

NQ, yesterday’s close: Settled at 22,196.25, up 83.00 on Friday and 605.50 on the week

E-mini S&P and E-mini NQ are firm coming out of the holiday weekend, trading 0.25% and 0.75%, respectively, from record highs. I joined the CNBC Halftime Report last Thursday and discussed a unique balance between fiscal and monetary policy acting as a tailwind, which can be seen in the video above.

The economic calendar is light, but traders want to keep an ear to the ground for comments from Fed members.

E-mini S&P and E-mini NQ futures are testing into the next layer of resistance. For the E-mini S&P, this is a large pocket of rare major four-star resistance at 6154-6167, which aligns with the area that traded when record highs were made at 6178.75. Going back to the spike during the week of January 20^th, there has been a bull-flag developing, and the strength late last week has been gearing for a bullish breakout of this pattern, as highlighted in the chart above. Remember, a bull flag is more about the market profile than a pretty chart; trapping shorts at lower levels and forcing buying at higher levels to create the breakout. Support in both the E-mini S&P and E-mini NQ are detailed in the levels below to align with Friday’s settlement, while holding above here, we find a breakout to be imminent; for this reason we have increased our Bullish Bias, detailed below. We do believe that tech will have to play a major role in fueling this breakout, as the E-mini NQ has led strength dating back to early last week. While it is testing key resistance this morning at 22,315, which has contained the early strength, we have major three-star resistance overhead at… 

Inflation is making waves, and Big Tech is feeling the heat. Bill Baruch breaks it all down on CNBC.

Want to keep up with the market? 

Subscribe to our daily Morning Express for essential insights into stocks and equities, including the S&P 500, NASDAQ, and more. Get expert technical analysis, proprietary trading levels, and actionable market bias delivered straight to your inbox.

Sign Up for Free Futures Market Research – Blue Line Futures

Futures trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. 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.
Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.
With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third party application. Blue Line Futures employees use only firm authorized email addresses and phone numbers. If you are contacted by any person and want to confirm identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500
Performance Disclaimer
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.