how we're trading PCE
Afternoon fellow futures traders.
We had some heavy news hit today that moved markets sginificantly.
We breakdown exactly how we’re trading it and levels to watch out for.
No time to waste.
Let’s jump in!
Impact Snapshot
Fed’s preferred inflation metric matches economist estimates
Jobless claims tick up in latest week
Market Evaluation
The conclusion of a robust month saw fluctuations in the S&P 500. Megacap stocks exhibited a mixed performance following a crucial economic report.
PCE inflation did indeed come in at 0.4% MoM/2.8% YoY as the market had anticipated following those elevated core CPI and PPI prints
For markets closely monitoring the Federal Reserve's shift toward rate easing, this report aims to instill confidence by clarifying that the question is not whether the Fed will commence rate cuts in 2024 but rather when it will happen.
Claims have been bouncing around low levels. Economists detect some softening in the labor market and don’t expect claims to remain so low in coming weeks.
Markets Breakdown
A great read of our trading report this morning prior the PCE inflation report over on X Here gave highlights on a perfect opportunity towards our key pivot of interest for the day.
We gave an update after the move Here highlighting the consequences of bulls failing to reclaim this zone that would lead into a “look above and fail” scenario and a pullback at the settle.
Market made a sharp move back below Europe’s session range and bounced off of it. It’s always important to look where the market has build value.
The value was to the upside, the market retraced back towards the settle for another attempt towards the key point of reference of the day.
Market is ranging inside a 5-day balance range. No breakout from balance as of right now. A clear re-claim of the 5100s will target a higher high above the balance.
ES
The targets we look for until NY close & Targets to pay attention Tomorrow:
Upside Levels: 5114/5135/5151
Downside Levels: 5043/5029/5013
That’s all we got today.
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.