Tech Drags Futures Lower as Indices Test Key Support Ahead of Data Deluge

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

S&P, last week’s close: Settled at 6881.00, down 9.50

NQ, last week’s close: Settled at 25,342.75, down 126.75

E-mini S&P and E-mini NQ futures carried Friday’s weakness into Monday. Despite Sunday night strength, the tape was slammed on the opening bell, with tech being the weakest link. Asia then followed lower last night, and both the E-mini S&P and E-mini NQ got tagged for 0.5% at 7:30 pm CT.

Price action is working off the worst levels ahead of a deluge of delayed economic data, headlined by the release of the November Nonfarm Payroll report at 7:30 am CT, along with October Retail Sales. Then, at 8:45 am CT, fresh December flash PMIs are due.

E-mini S&P futures traded below the 21- and 54-day moving averages overnight. Both indices hit their lowest since November 25th, but price action has pared a bulk of the losses ahead of the data dump. E-mini S&P futures tested and responded to support aligning with the .382 retracement from the recent high back to the November 21st low and the November 25th settlement. This pocket will act as a line in the sand as today unfolds. Given the rebound from that low, the bulls must work to keep price action above our Pivot and point of balance, with that level coming in at 6964-6975. Tech has been the laggard, and it will be crucial for the E-mini NQ to show life above first key resistance at…

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