how to trade CPI this week 📈
Afternoon traders.
We’ve got another round CPI and PPI news this week so we should see some heavy volatility.
Fear not. We’ve got you covered with the exact levels we’ll be trading.
Let’s jump right in…
Impact Snapshot
CPI Inflation - Tuesday
PPI Inflation - Thursday
Retail Sales - Thursday
Unemployment Claims - Thursday
Consumer Sentiment - Friday
Market Evaluation
The S&P500 index experienced a 0.3% decline this week as investors examined the mixed February employment figures.
Thursday marked a record close, driven by Federal Reserve Chair Jerome Powell's statement that the central bank was on the brink of being able to reduce interest rates.
Although US stocks initially saw gains following the Friday morning release of the February jobs data, they ultimately closed lower as investors delved deeper into the employment numbers.
Looking ahead to next week, the markets await crucial inflation readings that are poised to trigger for an eventful session.
Markets Breakdown
Many times we’re talking about “change” in the markets and why it’s important to take note of it when we observe it.
What we showcase in this market profile chart is this “change” and unusual activity that took place to close last week.
All the prior range ATHs and range highs since last year on the uptrend were either poor high formations which we’ve highlighted that they need “excess” above.
Friday’s session had an excess all time high that we haven’t seen in several weeks.
This was an aggressive rejection that could potentially be the short-term top of the market.
There is a slight bias to the downside and acceptance back inside the key value area distribution which will put us back into a multi-day balance range.
The market is awaiting key inflation reports that are major catalysts to drive market trends but this will remain a key highlight moving forwards to the week ahead.
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Key points of reference for the week ahead
Upside Levels: 5220/5243/5260
Downside Levels: 5176/5145/5115
That’s all we got!
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We’ll see you Tuesday.
-The QuantVue Team
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