are we at a tipping point in markets?
Afternoon traders.
We’ve got another market report for you to chew on this week.
Big news week underway so we’ve got you covered with the $ES levels we’ll be looking to trade.
Let’s jump in!
Impact Snapshot
Subtle signs of a cooling jobs US market will aid the Fed’s inflation fight
Tomorrow: ISM Services PMI, ADP Non-Farm Employment Change
Market Evaluation
Global stock and bond markets experienced declines amidst robust economic indicators and a surge in commodity prices.
This fueled speculations that major central banks may opt to maintain higher interest rates for an extended period.
Better than expected data on US job openings and factory goods orders added to skepticism about the pace of Federal Reserve easing.
As traders are now anticipating fewer rate cuts compared to the Federal Reserve's own projections, 10-year yields have surged to their peak levels of 2024.
Fed Chair Powell speech tomorrow in main focus. Volatility is often experienced during his speeches as traders attempt to decipher interest rate clues.
Markets Breakdown
Our main pivot of the day this morning which has been the magnet of price since the start of the session at 5246, has also became the POC of the session.
This important reference point is sitting on the upper side of the prior multi-day balance range.
What we want to monitor is acceptance back inside the prior multi-day balance, which would likely lead into a rotation towards the other end of that balance, or the lack of.
Bulls will want to defend this area in order to prevent acceptance back inside this high value area below while bears want to continue holding inside, indicating “acceptance” of lower prices.
What was support for the market to the upside will act as key resistance following this break from balance.
Visualised by the chart below, we can see these two balance references and the volume profile on the left. As always, high volume nodes act as magnets of price.
ES
The targets we look for until NY close & Targets to pay attention Tomorrow:
Upside Levels: 5274/5283/5295
Downside Levels: 5221/5211/5190
That’s all we got.
We’ll see you Thursday!
-The QuantVue Team
Disclaimer: Futures and options trading carries a significant level of risk and may lead to substantial financial losses. The content provided in this newsletter is solely for informational purposes and should not be construed as a trade recommendation or financial advice. It is essential for readers to independently assess and make their own investment decisions, taking into consideration their personal financial situation and risk tolerance.