have the bulls run out of steam?
Afternoon traders.
Hope everyone is doing well.
We had an ugly jobless claims report today with #s coming in at a 9-week high. Ouch.
Does this mean the bulls are toast?
We break it all down in today’s market brief along with the levels we’ll be trading.
Let’s jump in!
Impact Snapshot
Jobless claims climb to nine-week high
Tomorrow: Average Hourly Earnings/ Non-Farm Employment Change/Unemployment Rate
Market Evaluation
Traders preparing for Friday’s jobs report propelled stocks higher, with some of the world’s largest technology companies leading the gains.
Just a day ahead of key payrolls data, a reading on jobless claims topped estimates which is consistent with an uptick in job cuts that would help make the case for the Federal Reserve to start lowering rates.
Powell reiterated that although there remains potential for interest rate reductions this year, policymakers require further evidence indicating a sustained move towards the central bank's 2% inflation target before considering rate adjustments.
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Markets Breakdown
The importance of focusing at value and not price made it’s appearance again yesterday.
This added context to the statement we’ve made yesterday here of how the trend would remain intact if bulls could hold above those references here
As visualized by the chart below, we can clearly see how we’ve build value to the upside which put us back inside the key multi-day balance range.
The closing weakness shaken off weak longs and replaced them with stronger market participants which took the market to the upside and eyed continuation all the way towards the all-important 5300s.
In today’s market plan here, we shared insights of the upside points of interest to look at after a clear flip of 5288, triggered continuation.
Our destination target towards 5308 has given a big initial reaction right at the US open. Very important using points of reference to describe if the market has over extended itself. Read the update here.
ES
The targets we look for until NY close & Targets to pay attention Tomorrow:
Upside Levels: 5317/5336/5355
Downside Levels: 5289/5273/5251
That’s it for today.
We’ll see you again on Sunday!
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.