S&P and NQ Extend Gains, But Risks Loom with Heavy Calendar

Globe and Mail

01-05-2025

Buying Relative Outperformance: Early this week Bill Baruch of Blue Line Capital bought these three names, find out why.
E-mini S&P (June) / E-mini NQ (June)
S&P, last week's close: Settled at 5549.75, up 38.50 on Friday and 237.00 on the week
NQ, last week's close: Settled at 19,535.25, up 213.25 on Friday and 1,154.50 on the week
E-mini S&P and E-mini NQ futures finished last week on firm footing as the White House's narrative on trade softened a bit and earnings season got off to a strong start. Although we remain upbeat, much of this can shift instantly. On one front, there are two factions within the White House: that of Treasury Secretary Bessent, who is more in tune with a cohesive market environment, and that of Trade Representative Navarro, a vocal China hawk. On the other front, earnings have been good, but 36% of S&P companies report this week. Names like UPS, KO, V, SBUX, and CAT lead the list over the next 48 hours, before MSFT and META report Wednesday after the bell.
Additionally, there is a deluge of economic data this week: Core PCE Wednesday, ISM Manufacturing Thursday, and Nonfarm Payrolls Friday.
E-mini S&P and E-mini NQ futures battled off support early Friday and have so far carved a path of higher lows on today's session. First key support in the S&P comes in at 5511.25-5516.25, and below there is 5497.75-5499.75, before additional support aligns with Friday's low. Both indices are out above our Pivot and point of balance ahead of the opening bell. We believe holding above here will invite a continuation of momentum, with these levels coming in for the E-mini S&P at…
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