are we seeing cracks in the market?📉
Hey traders.
Your favorite futures trading analysts are back in your inbox with another juicy market report.
We just saw a VERY hot CPI and PPI print, so we’ve got alot to digest.
No time to waste. Here’s how we’re trading this news.
Let’s jump right in…
Impact Snapshot
February's CPI and PPI reports both came in hotter than expected for the second straight month.
Market Evaluation
The S&P 500 slipped after the release of hotter-than-expected U.S. inflation data that sent Treasury yields higher.
Producer price index, rose to 1.6% for the year ending in February, much hotter than expected.
Yet another scorching inflation report has solidified expectations that the Federal Reserve will maintain its cautious approach towards rate cuts.
The PPI report is the last major piece of economic data to be released prior to the Federal Reserve’s upcoming policy meeting, set for March 19-20.
Markets Breakdown
After another key economical report this morning, the market saw a pullback towards today’s highlighted pivot at 5213.
The market remains well within a multi-day balance range. Today’s overnight session managed to clear up the poor structure left at 5246 but this remains a weak reference point that is likely to see stronger excess above.
As always, it’s important to follow up where value is heading and not focusing exclusively on price.
Many times market has to break before it can rally in order to shake off some of the weaker hands.
We’ve highlighted the value areas of each US session on the image bellow. There was a considerable amount of selling creating weak points of reference the past two days.
As long as the market keeps consolidating and building value to the upside, there are high odds of another higher high breakout above 5257.
ES
The targets we look for until NY close & Targets to pay attention Tomorrow:
Upside Levels: 5230/5265/5288
Downside Levels: 5187/5170/5145
That’s it for today.
We’ll see you again on Sunday for the pre-week brief!
Cheers.
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-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.