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Hey team.
We've got another market brief on $ES for you.
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Impact Snapshot
Initial jobless claims in US increase by most since early May
Market Evaluation
All three major U.S. stock indexes experienced losses, with the blue-chip Dow declining the most, breaking its streak of consecutive record closing highs.
This week, money had been moving to a wider range of industrial and staples firms, but these also experienced a selloff.
Wall Street's "rotation" paused, despite a surge in jobless claims indicating a continued cooling of the US labor market.
Tech and growth stocks have shown instability, supporting the idea that small-cap stocks are benefiting from investors shifting their focus away from this year’s top performers and into less favored market sectors.
Initial jobless claims exceeded analysts estimates, indicating a further softening of the labor market.
According to the U.S. Federal Reserve, this is a necessary step toward achieving a sustainable decrease in inflation.
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Markets Breakdown
Unlike yesterday, when we observed money flowing into various sectors, today it was a pretty broad selloff.
Bears took control of the market and targeted a re-test off of a key balance range below that the market has spent around 2 weeks of trading.
An early attempt towards a recovery of the upside gap that was left on yesterday’s session didn’t get any follow up momentum at the open.
This lead into a break of today’s pivot at 5626 which as we’ve highlighted in today’s report here would put the bearish scenario in full effect with some serious liquidation follow up.
Generally speaking, finding acceptance back inside a multi-day range that the market has established value, we are possibly looking for a re-test of the lower-end of that range once accepted.
Bulls need to prevent acceptance of the 2-week balance range by maintaining activity above the settle of 5594 heading in tomorrows session and target recovery towards the single prints that were left on today’s profile.
ES
Some references we’ll be looking going forward:
Upside Levels: 5622/5631/5643
Downside Levels: 5560/5546/5535
That’s all we got!
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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.