EQUITIES: Holding Near Highs Ahead Of Trump AI Announcement, Netflix Earnings
US equities have sustained gains made through early afternoon, with small cap futures (Russell 2000 +1.7%) outperforming larger-cap counterparts. Dow futures (+1.1%) lead the rest of the pack, with S&P e-mini futures (+0.8%) and Nasdaq (+0.6%) slightly lagging.
- All major sectors of the S&P 500 are in the green for the day, with energy (-0.7%) the only category in the red. Oil majors have performed poorly amid soft crude prices, reflecting promises by Pres Trump to boost US oil production.
- Utilities (Vistra up 9+%), Industrials, and Real Estate are each up 1.8-2.0%. Tech (and the NASDAQ), up 0.4%, is a laggard despite reports that President Trump will announce a major AI investment involving OpenAI, Softbank and Oracle. Attention is on this announcement which is due just after the cash close.
- Note that Netflix is higher (+1%) ahead of earnings anticipated after the close.
- Front S&P e-mini futures have traded in a large range, dropping to just below 6,000 (5994.50) overnight on Trump clarifying that tariffs on Mexico and Canada were still threatened, with the high of 6,086.50 remaining below resistance (6107.50 High Dec 26).
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TRUDEAU SAYS `WE HAVE A LOT OF WORK TO DO'
- TRUDEAU SAYS `WE HAVE A LOT OF WORK TO DO'
- TRUDEAU WANTS GOVT TO PREPARE FOR NEW US ADMINISTRATION
- TRUDEAU DOESN'T ADDRESS QUESTIONS ABOUT HIS LEADERSHIP
USDCAD TECHS: A Pullback Would Be Considered Corrective
- RES 4: 1.4539 3.382 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 3: 1.4537 2.0% 10-dma envelope
- RES 2: 1.4508 3.236 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 1: 1.4467 High Dec 19
- PRICE: 1.4356 @ 16:56 GMT Dec 20
- SUP 1: 1.4301 Low Dec 18
- SUP 2: 1.4174/4014 20- and 50-day EMA values
- SUP 3: 1.3928 Low Nov 25 and a key support
- SUP 4: 1.3822 Low Nov 6
USDCAD bulls remain in the driver’s seat. While price faded into the Thursday close, the recent breach of 1.4178, the Nov 26 high, confirmed a resumption of the uptrend and this maintains the price sequence of higher highs and higher lows. The latest rally opens 1.4508 next, a Fibonacci projection level. Initial firm support to watch lies at 1.4174, the 20-day EMA. A pullback would be considered corrective.
AUDUSD TECHS: Bearish Trend Structure
- RES 4: 0.6550 High Nov 25
- RES 3: 0.6501 50-day EMA
- RES 2: 0.6429 High Dec 12
- RES 1: 0.6337/6396 Low Dec 11 / 20-day EMA
- PRICE: 0.6263 @ 16:55 GMT Dec 20
- SUP 1: 0.6199 Low Dec 19
- SUP 3: 0.6158 1.236 proj of the Sep 30 - Nov 6 - 7 price swing
- SUP 3: 0.6100 Round number support
- SUP 4: 0.6045 1.500 proj of the Sep 30 - Nov 6 - 7 price swing
The trend needle in AUDUSD continues to point south and this week’s fresh cycle lows and Wednesday’s sell-off, reinforce a bear theme. The move down maintains the price sequence of lower lows and lower highs. Note that moving average studies are in a bear-mode position too, highlighting a dominant downtrend. The break lower opens 0.6158 next, a Fibonacci projection. Initial firm resistance to watch is 0.6396, the 20-day EMA.
