Equity Futures Pull Back as Powell Flags Valuations, Support Levels in Focus

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

S&P, yesterday’s close: Settled at 6715.00, down 37.50

NQ, yesterday’s close: Settled at 24,827.25, down 175.75

E-mini S&P and E-mini NQ futures retreated from Monday’s record highs after flash PMIs were a touch lighter than expected, and then Fed Chair Powell’s comments that stock prices are “fairly highly valued.” Overall, the Fed Chair was balanced in reiterating the focus on labor risks, although there was an undertone of stagflation. Names like NVDA, ORCL, and TSLA gave back Monday’s strength, while AMZN was also weak. Building Permits data is due at 7:30 am CT, and New Home Sales at 9:00 am CT.

E-mini S&P futures built out support yesterday at the 6701.75 low, aligning with 6705.75 as a major three-star level, which will act as a line in the sand on the session. The E-mini NQ has key support at yesterday’s low of 24,780-24,790. To the upside, previous support is now resistance, a key level at 6729.25-6731.50 in the E-mini S&P and 24,952-24,975 in the E-mini NQ. Price action is holding above our Pivot and point of balance at… 

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