Gearing up for Friday's catalyst
Hey team.
We've got another market brief on $ES for you.
This shortened week is likely gearing up to end with a bang with the PCE inflation on main focus.
We re-cap today’s comments we’ve made in our market report and see what’s next for the markets.
Let’s jump in!
Impact Snapshot
US Consumer Confidence Rises for First Time in Four Months
Market Evaluation
The Nasdaq crossed 17,000 for the first time ever on Tuesday, boosted by gains in Nvidia, while the S&P500 closed slightly higher.
Softer inflation data earlier this month and better-than-expected quarterly earnings reports lifted sentiment, with the former suggesting interest rate cuts could come earlier than anticipated.
Just a few days before the Fed’s favorite price gauge, a report showed US consumer confidence unexpectedly rose in May.
The Fed’s first-line inflation gauge is about to show some modest relief from stubborn price pressures, corroborating central bankers’ prudence about the timing of interest-rate cuts.
Markets Breakdown
Early this morning on our market report here, we laid out our outlook for the market which was seeing a weak, low volume upside on Monday’s session that was in need of a correction.
Generally speaking, overnight/bank holiday sessions are traded by short term, under capitalized traders.
The reason being is that the market is too thin and lack liquidity for any big institutional activity to participate and get their orders filled.
This low volume grind to the upside yesterday was seen as low confidence, driven by weak longs that got ahead of themselves.
Market broke to the downside right at the open, shaking out those weaker hand traders on the exact manner we’ve highlighted.
The move didn’t sustain any follow up with the session returning back above the settle with some stronger buying as the market didn’t find acceptance below 5300s.
Heading in tomorrows session, our immediate focus points are the gap that we left right below today’s spike and the 5343 resistance that we need to establish as support in order to eye another ATH.
ES
Some references we’ll be looking throughout the overnight going in tomorrow’s session.
Upside Levels: 5343/5373/5381
Downside Levels: 5289/5276/5267
That’s all we got!
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