Equity Index Futures Higher, 10-Year Treasury Yield Lower As Markets React to Bessent Nomination

Good Monday Morning, MPTraders!  November 25, 2024-- Pre-Market Update: It's Thanksgiving Holiday Week and its accompanying bullish seasonal for the stock indices that THIS YEAR already has been initiated by President-Elect Trump's highly regarded nomination of Scott Bessent for Treasury Secretary (over the weekend). 

According to the financial press, Bessent is a proponent of a 3-3-3 Policy: 

1-- Cutting the Budget Deficit to 3% of GDP by 2028

2-- GDP Growth of 3% 

3-- Increasing Oil Production by 3 million barrels/day 

Furthermore, Bessent is supposed to view the use of tariffs in a more surgical, nuanced fashion that could (should) counter Trump's potential blanket tariff threat to be imposed on any nation (and company) that is manufacturing abroad and sending goods into this country he believes is ripping off the US and the American consumer.  

Because of the stronger growth, fiscal responsibility, and lower inflation implications of what Bessent brings to the Administration, the equity futures indices (ES) popped 0.5% higher, 10-year Treasury YIELD has dropped to 4.34% from 4.41%, and the Dollar Index has dropped to 107.00 from 107.49...

At Friday's close ES hinted that it "wanted to move higher" because the second half of the session carved out a Bull Flag formation that we discussed in my parting comments ahead of the weekend. This AM's up-gap open and climb of 30-35 points argues in favor of a test of the early November ATH-zone of 6035 to 6053.25 that if hurdled and sustained, will project to my next optimal upside Target Zone of 6090-6110 (see my attached Hourly Chart). 

Only a bout of weakness that slices through support from 5970 to 5955 will compromise and delay the currently bullish setup... Last is 6015.50...