Big weekly close ahead
Morning Express

As you know, our whole report goes out each morning to clients and Free Trial subscribers berfore 7:00 am CT. Enjoy our Fundamnetals below. But please register for a Free Trial of 1 or all 5 of of our Blue Line Express daily commodity reports in order to get all of our great insight; Techinicals, Fundamenals, and proprietary Bias and Levels. E-mini S&P, Crude, Gold, Natural Gas and the 10-year.

Free Trial

If you are viewing on Barchart, the links may not work. Please copy and paste this in your browser:

E-mini (S&P)

Yesterdays close:Settled at 2593

Fundamentals:Equity markets took it on the chin into the close yesterday and the S&P traded to a new intraday low of 2577. Considering such, this was a good overnight session. In fact, we are surprised we did not see continued selling into Asian hours. While the Nikkei is down more than 2% today, much of the damage was incurred on the futures side during U.S hours. The big news this morning is that the government finally did it, they passed a spending bill that will last two years and not two days. The agreement will increase federal spending by $300 billion. To some degree, we cannot argue that the stock market probably feels some sort of comfort from this. The question today is, will buyers show up ahead of the weekend? One thing we will be watching is the 10-year treasury yield which is back to the highs, something that will make equity markets a little uncomfortable. How do you think they are paying for this new spending bill? Lastly, we have heard throughout the week that an unwind from the VIX destruction was still being done. Did yesterdays close jump that hurdle? Chinese inflation data last night was in line with expectations on a yearly basis, but the monthly CPI fell just shy. There is no major data out of the U.S today.

Technicals:During these volatile swings, major three-star levels have been the benchmark.Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Crude Oil (March)

Yesterdays close:Settled at 61.15

Fundamentals:Crude was able to stabilize into settlement after trading to session low of 60.59. However, continued sell pressure from equity markets took Crude lower late in the electronic session. Inflation data from China cooled last night as expected; CPI YoY matched expectations at 1.5% but this is down from last months read of 1.8%. With Crude battling against the psychological $60, traders should keep an eye on two things today that will help drive this market; equities and the Dollar. Baker Hughes rig data is due at noon CT; we have seen 18 rigs added in the last two weeks and production push records.

Technicals:Crude continues to pound against major four-star support at 60.04-60.12. This is a four-star level mainly because the significance of a close below here.Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Gold (April)

Yesterdays close:Settled at 1319

Fundamentals:Gold has not performed during this stock market volatility. This is because the Dollar has strengthened from oversold conditions. Not to worry though, we believe the Dollars bounce is getting close to done. Furthermore, we see the Dollar making a new low in the not too distant future. What does this mean for Gold? There is a key psychological level at $1300, and as long as this area roughly holds, it will set Gold up for a bullish continuation on the year.

Technicals:We are long-term Gold bulls but have also been chart friendly. We Neutralized our Bias below $1280 in November/December to turn Bullish upon the Fed hike. We then Neutralized it again at $1360. We began reintroducing our Bullish Bias yesterday. Is the bottom in on this leg lower, probably not. However, we are looking to major three-star support at 1301.1-1306.6 to be a strong area to position against in the long term. Below there is also strong support and a backstop of sorts at 1290.4-1291.5. Traders should lean on these levels to position long for the next wave higher, one that we believe should take out $1400.


Resistance: 1321.6-1321.7**, 1329.1-1331.9**, 1349.7-1351.4**, 1365-1370***

Support: 1301.1-1306.6***, 1290.4-1291.5***, 1272.9***

Natural Gas (March)

Yesterdays close:Settled at 2.681

Fundamentals:After encouraging price action early yesterday and a draw on the larger side of expectations, Natural Gas took out key support last night. A snow storm has swept across the Midwest and will last into this weekend. In fact, its been snowing across here all week. At the same time, there are school closings and such, this can reduce consumption. Though this likely played a factor in the lower price action, we believe it to be more technical.

Technicals:Price action is dipping sharply below key support into this morning.Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

10-year (March)

Yesterdays close:Settled at 120285

Fundamentals:Poor auctions this week added to pressure on the long end of the treasury complex. The 10-year traded to a new low early yesterday before recovering. The lower action sent yields higher and consequently put pressure on equity markets. Which in-turn encouraged buying of treasuries. In a complicated week, the domino effect is real. There is no major U.S data today and we would imagine seeing continued buying if equities remain under pressure ahead of the weekend.

Technicals:We remain Neutral on the 10-year at the moment.Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Sign up for 1 or all 5 of our Blue Line Express commodity reports!

Free Trial

Please do not hesitate to contact us with any questions on the markets, trading, or opening an account


Follow us on Twitter:@BlueLineFutures

Follow us on Facebook:Blue Line Futures Facebook page

Subscribe to our YouTube channel:Blue Line Futures YouTube channel

Futures trading involves substantial risk of loss and may not be suitable for all investors. 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.