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Solid Earnings Supports Benchmarks

04/23/2019 12:44 pm EST

Focus: MARKETS

Bill Baruch

President and Founder, Blue Line Futures

Overall strong earnings are keeping indexes well supported, says Bill Baruch President of  BlueLineFutures.com.

E-mini S&P (ESM)

Yesterday’s close: Settled at 2912.50, up 2.50

Fundamentals: U.S benchmarks are stable this morning upon a deluge of earnings. Our first supports in each the S&P and NQ held early yesterday, and the NQ drifted to tap a new all-time high at the close on the lowest volume day of the year. The NQ has remained elevated at all-time highs with good earnings buoying the broader tape. Coca-Cola (KO), Twitter (TWTR), United Technologies (UTX) and Lockheed Martin (LMT) are all holding onto large gains premarket after beats this morning. This action is certainly trying to set a tone with more volume coming into the market now that Europe is back from holiday. The German DAX is down marginally, and the Shanghai Composite is posting another red session after the People’s Bank of China has signaled it will be less supportive with stimulus now that the economy is on solid footing. Crude oil remains in the spotlight geopolitically after the White House officially announced it will end waivers on importing Iranian oil on May 2. The XLE Energy Sector ETF gained 2.11% yesterday but a continued rise in Crude and Gasoline prices is something traders want to watch over the next 30 days as it can dampen consumer sentiment.

Technicals: The NQ has been trading in breakout mode, as we have noted here, since April 16 after a two weeklong consolidated grind slightly higher. Price action is holding a new all-time high this morning and a continued hold out above 7703.75 will keep it on a path of least resistance in the immediate term.

Crude Oil (CLM)

Yesterday’s close: Settled at $65.55, up 1.48

Fundamentals: Crude extended gains overnight and is holding at the highest level since Oct. 31 as the market digests Iranian supply being removed from the market. The White House officially announced yesterday there will be no more waivers on importing Iranian oil after May 2 as they increase pressure on Tehran. President Trump seems confident that Saudi Arabia and allies will be quick to ramp production to make up for the missing Iranian oil. Although this is highly likely down the road, we find them more reluctant to do such immediately given the path of events tied to the Iranian waivers last year.

Technicals: We have been upbeat crude oil and remain such. Price action is holding at the $65.74 resistance area.

Gold (GCM)

Yesterday’s close: Settled at $1,277.6, up 1.6

Fundamentals: Gold is lower this morning after failing to close back above our crucial resistance mark yesterday. The dollar is surging against currency pairs and adding to the technically poor landscape. Although the U.S data has not been good, the U.S is favored as the best house on the block keeping a continuous bid under the dollar. Chicago Fed National Activity and Existing Home Sales both missed yesterday. Today, we look to New Home Sales and Richmond Fed Manufacturing at 9:00 am CT.

Technicals: Price action is making new lows today after again failing to hold the $1,280.8 mark into settlement.

Bill Baruch provides technical levels on all markets throughout the week at  BlueLineFutures.com

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