how we're trading this week
Evening team.
We’ve got another market brief to get you up to speed for the week ahead.
Between unemployment, Powell speaking, the Middle East conflict, we’ve got our hands full yet again!
We share the ES 0.00%↑ levels we’ll be watching out for.
Let’s jump in!
Impact Snapshot
Retail Sales - Monday
NY FED Manufacturing - Monday
Fed Chair Powell Speech - Tuesday
Unemployment Claims - Thursday
Key Earnings: NFLX 0.00%↑ TSM 0.00%↑ BAC 0.00%↑ GS 0.00%↑ MS 0.00%↑
Market Evaluation
The S&P500 fell 1.6% this week, its second straight weekly decline, driven by elevated consumer prices and cautious JPMorgan cautious guidance.
The downturn coincides with investors keen anticipation of clues regarding the Federal Reserve's future actions.
As the new week begins, financial markets are poised on edge, grappling with the uncertainties of geopolitics.
As investors grapple with stubborn inflation and the looming specter of sustained high interest rates, the escalation of the Middle East crisis promises to introduce new waves of volatility once trading resumes.
Economic data due next week include US retail sales, Unemployment Claims, among other reports. Additionally, we are closely monitoring Q1 corporate performance as earnings season kicks off.
Markets Breakdown
There is too much geopolitical uncertainty going on right now which can drastically affect market conditions heading into next week.
The escalation in the Middle East is nowhere near finished. While we are focusing on market generated information, this catalyst alone can drastically change market conditions overnight.
We will proceed with caution next week. Buyers must step in and defend the key pivot of 5128 in order to prevent acceptance back bellow a multi-day balance range in order to establish acceptance back above the psychological level of 5200s and start building value to the upside.
On Monday’s open, we will focus on the double distribution of Friday.
Maintain activity on the lower distribution is a sign of weakness that will lead into further downside continuation.
Check the video format of this report with further insights here
ES
The key points of reference we will look for heading into the week ahead:
Upside Levels: 5194/5223/5246
Downside Levels: 5128/5115/5081
That’s all we got for you in this one.
We’ll see you on Tuesday!
Cheers.
-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.