have the bulls claimed victory?
Howdy traders.
J-Pow kept rates steady and the market surge continues on.
We breakdown exactly how we’re trading in the coming days.
No time to waste, let’s jump in…
Impact Snapshot
Latest housing and manufacturing data show economic strength
Market Evaluation
The Federal Reserve's decision to keep interest rates steady (at 5.25% to 5.50%) came as no surprise, yet it caught some off guard by sticking to its projections of three rate cuts by the end of the year.
The relentless surge in stock prices continues fueled by optimism surrounding the Federal Reserve's ability to orchestrate a smooth economic transition, thereby enhancing prospects for corporate earnings.
The latest round of housing, manufacturing and labor-market data pointed to a resilient economy that, in theory, would scare policymakers trying to bring inflation back to target.
Sierra Chart Suite
On our trading plan yesterday (read here) we’ve highlighted the importance of looking for continuation if the market contained activity inside the upper distribution of Tuesday.
The Market profile is a real-time evolving database which records, organizes and displays auction-generated information. This is exactly what we use every single day in order to come up with our contextual analysis and visualize acceptance of new prices or lack of. We’ve put together the Ultimate Sierra Chart suite in addition to an entry level course e-book around Auction Market Theory, Market Profiles & Order Flow.
Markets Breakdown
Our comments since the start of the week were “anticipation” of the key catalyst of interest rates to drive the markets away from balance.
This is exactly how Wednesday’s session unfolded with a clear break from balance and upside continuation.
The key theme is acceptance of new prices and formation of a new balance range above the previous multi-day balance range.
Failure to maintain that activity can see us fall back inside the multi-day balance range
Range-bound activity since the open for the market today with bulls targeting our first upsdie pivot of the day but got rejected, leading into a pullback towards a gap-fill on the exact manner we’ve highlighted on our report (Here).
ES
The targets we look for until NY close & Targets to pay attention Tomorrow:
Upside Levels: 5328/5343/5355
Downside Levels: 5287/5265/5255
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.