Fresh Record Close, but Breakout Needs Broader Tech Participation

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

S&P, yesterday’s close: Settled at 6987.75, up 44.00

NQ, yesterday’s close: Settled at 25,822.00, up 244.25

Yesterday was a new all-time closing high for the E-mini S&P, while the E-mini Dow was the winner, gaining 1% amid a clean breakout. The E-mini NQ gained 0.95% and finished at a downtrend line from the October highs. The memory space was on fire, with MU +10%, SNDK +27.57%, and WDC +16.77% after NVDA CEO Jensen Huang’s comments on the memory market at CES. However, signals are mixed to start today; an undertone of geopolitical concerns meets a deluge of economic data, including the first look at December jobs with ADP Payrolls at 7:15 am CT and the ISM Non-Manufacturing report at 9:00 am CT.

E-mini S&P futures settled right at resistance at 6986.75-6988, and poked its head towards the 6994 level. The momentum is on its side, but the largest stocks in the index, the Mag 7, have not participated outside AMZN. This is why we have seen only a solid trading day from the E-mini NQ, and not a gangbusters run. The E-mini Dow has outperformed, with strong participation from banks on Monday and from healthcare yesterday. We want to see the utmost construction today to lay the groundwork for a clean breakout in the E-mini S&P and a move out in the E-mini NQ, not only above the downtrend line from October but also through the gap resistance from December 11th (close prior to AVGO earnings), creating rare major four-star resistance at…

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