how to trade Powell's testimony this week
Hey team.
Back again with another market report.
Another HOT week with J-Pow’s testimony, and NFP / unemployment set to be announced tomorrow.
We break it all down & how we’re trading it, right here.
Let’s jump in…
Impact Snapshot
Non-Farm Employment - 8:30am
Unemployment Rate - 8:30am
Average Hourly Earnings - 8:30am
Market Evaluation
Jerome Powell, the Chair of the Federal Reserve, hinted that the central bank is nearing the requisite confidence to commence a reduction in interest rates.
Stocks marched higher, pushing the S&P 500 and Nasdaq back to record highs, as hope over easing inflation and gains in tech aided Wall Street’s midweek bounce.
The focal point of the day was Powell's speech, which included comments providing additional insight into officials' considerations regarding the timing of the initial rate cut.
This reinforced the notion that such a decision might be on the horizon within the next few months.
The week will close with an eventful session as key economical reports of NFP, Unemployment Rate & Average Hourly Earnings are set to release at 8:30am ET.
Ultimate TradingView Suite
Massive opportunity right at the US session open yesterday, around our key points of reference and contextual analyses from our daily trading plan posted over on X here.
The overnight advance was a weak attempt to re-gain some of the ground of Tuesday’s session that saw an initial pullback of over 0.48% at the open. With the use of our custom made indicators and Tradingview Suite, plenty of confluence was given for this short trading setup. See the update here
Markets Breakdown
Today’s session followed up a textbook kind of scenario we were looking since our trading plan over on X (read it here).
Despite the pullback after the gap-fill on yesterday’s session, the market has built value higher.
So many times we talk about value being the key objective rather than following price and today’s session gave a highlight of that with the market finding continuation and targeting a higher high for the session.
Tomorrow is shaped to be a pretty eventful session with plenty of economical reports that will act as catalysts for the market.
ES
The targets we look for until NY close & Targets to pay attention Tomorrow:
Upside Levels: 5182/5194/5214
Downside Levels: 5133/5092/5070
That’s it for today’s brief.
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We’ll see you on Sunday.
-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.