STIR: Net Short Cover In Most SOFR Futures On Tuesday

• Some of the largest volume and dip buying is going through here in NQH5 (Nasdaq), over 20k in the last 5 minutes.
• US Tnotes is also seeing way above average volumes with 770k lots traded, with the US just joining the session.
• US 10yr Yield is testing the 4.50% level, and next area of interest in TYH5 is at 109.28, not a Tech level but where the contract was trading at before the Hawkish December FOMC meeting.

Nasdaq futures is finding some demand just short of the January low of 20,694.00 for now.

(Chart source: MNI/Bloomberg).

• RES 4: 6200.00 Round number resistance   
• RES 3: 6178.75 High Dec 6 and key resistance  
• RES 2: 6163.75 High Dec 16
• RES 1: 6105.25/6162.28 Intraday high / High Jan 24             
• PRICE: 5982.75 @ 10:46 GMT Jan 27 
• SUP 1: 5961.75 Low Jan 16         
• SUP 2: 5943.94 61.8% retracement of the Jan 13 - 24 bull leg 
• SUP 3: 5892.37 76.4% retracement of the Aug 5 - Dec 6 bull leg
• SUP 4: 5809.00 Low Jan 13 and a key support 

The S&P E-Minis contract has started the week on a bearish note, extending the pullback from Friday’s high. Key short-term support to watch lies at 5961.75, the Jan 16 low. For now, the move down appears corrective, however, a breach of 5961.75 would strengthen a bearish threat and signal scope for a deeper retracement. This would open 5943.94, a Fibonacci retracement. Key resistance is unchanged at 6178.75, the Dec 6 high.