Trade and Sentiment - Blue Line Express
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E-mini S&P (June)

Yesterdays close:Settled at 2878.50 up 23.50

Fundamentals:U.S benchmarks roared higher yesterday on strong momentum and broadly ignored technical resistance levels. In the end though, wave after wave of strong resistance and heavy overhead supply wore down the buyers before price action stalled and pared gains ahead of the close. The S&P still managed a strong session gaining 0.8% but it also finished 0.5% from its high. A lack of both fundamental and technical value at its peak began to crater sentiment. However, it was comments out of China overnight on trade that turned yesterdays pullback into a slow bleed lower. Two state-owned Chinese news agencies published columns taking a hard-lined stance on trade talks pointing blame at the U.S and implying it has little intention of resuming talks ahead of the G-20 Summit meeting between the two leaders. Remember, this comes after and in response to, for all intents and purposes, the U.S banning Huawei chips. The Chinese Yuan shed 0.43% against the Dollar overnight checking its weakest since December 3rd. The currency is down 2.65% in May. How will the White House respond, if at all? During U.S hours, they have attempted to support sentiment.

Speaking of sentiment, fresh May Michigan Consumer data is due at 9:00 am CT. We expect a better read to lift the risk appetite as long as trade headlines dont worsen. To give you a better idea of the current landscape; after the bell, NVIDIA beat earnings, but the broader environment has pressured the stock into the red, it is down nearly 1% this morning along with sector. Later today, NY Fed President Williams is on the schedule to speak at 10:15 am CT and 1:00 pm CT. Fed Governor Clarida is due to speak at 12:40 pm CT. The CMEs FedWatch Tool currently shows a 78.1% chance the Fed cuts rates this year, the highest yet.

Technicals:Price action is sharply lower this morning, leaving a gap at yesterdays settlements. For the NQ, we look to this as the strongest resistance on the board today, aligning at 7600.25-7610.25; a move out above here is bullish. For the S&P it is trading below a significant battleground this morning at ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Crude Oil (June)

Yesterdays close:Settled at 62.87, up 0.85

Fundamentals:Crude Oil is higher with tensions in the Middle East boiling ahead of the weekend and through the homestretch of a seasonally bullish time of year into Memorial Weekend. Gasoline, the complexs seasonal driver, led the way after a drawdown of inventories Wednesday. Its overnight high was 0.5% from its late April peak. Data confirmed Russia kept production below its cap and this has also been favorable for the tape as a meeting between OPEC+ brass gets underway this weekend. Traders want to keep a pulse on the broader risk-sentiment which has soured due to rising tensions on the U.S-China trade front. Also, both WTI and Brent will help keep a pulse on tensions in the Middle East ahead of the weekend. Gasoline will help navigate the seasonality.Bill Baruch spoke with Bloomberg yesterday morning to discuss the landscape.

Technicals:We remain upbeat and believe there are further gains to be had in this complex on a technical basis. However, the broader fundamentals attached to U.S-China bring a degree of uncertainty today. We will remain Bullish in Bias as long as the tape stays out above ...Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

Gold (June)

Yesterdays close:Settled at 1286.2, down 11.6

Fundamentals:Gold is seeing pressures due to the weakening Chinese Yuan. Today it is down 0.43% against the Dollar totaling a loss of 2.65% this month. The Treasury complex is recovering though with risk-sentiment under pressure upon trade tensions worsening. The technicals are also dragging on the metal after a breakdown yesterday. Todays Michigan Consumer data will be crucial in determining how Gold finishes the week. Yesterdays deluge of beats immediately hurt the metal, but the odds of a rate cut in 2019 have actually increased since.

Technicals:The Dollar Index is again battling at the highest area since May 2017 and Gold traders must keep an eye on a potential breakout close above 98.00 on a weekly basis. The metal is again lower, and the immediate-term constructive landscape has been completely neutralized after trading below 1290 yesterday. First key support comes in at ....Please sign up for a Free Trial at Blue Line Futures to view our entire technical outlook and proprietary bias and levels.

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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