how we're trading this week
Hey team.
We've got another market brief for you with all the important areas we’re looking to participate on this week.
Let’s jump in!
Impact Snapshot
Unemployment Claims - Thursday
30-y Bond Auction - Thursday
Consumer Sentiment - Friday
Fed speakers throughout the week
Market Evaluation
The S&P500 index saw a 0.5% increase this week, kicking off May on a positive trajectory.
The index earlier this week ended April with a 4.2% loss, the first monthly drop since October 2023.
The decline came amid increasing fears that it may be a while before the Federal Open Market Committee feels comfortable lowering rates.
Quarterly earnings reports continued to come in largely above expectations although revenue hasn't been coming in above estimates as much as earnings.
The economic reports for the week is on a much lighter side in contrast to last week with Unemployment Claims and Consumer Sentiment later in the week standing out as the key highlights.
NinjaTrader Indicators
Check out our latest YouTube video on how we’re using our NinjaTrader toolkit in order to find profitable scalping opportunities on ES & NQ!
Markets Breakdown
The market is on a multi-day balance range and closed on an attempt to break above the range that stalled on our exact Friday reference. Read our market update here.
With the lack of economical reports early in the week to offer a key catalyst role, we want to focus if the market is really that strong to break and hold above this multi-day balance range, or we’re dealing with an attempt to find acceptance that failed, leading into a rotational activity towards the balance lows.
We often say, it’s better to be a little late on a move and see clear confirmation than being too early.
Our main focus heading into the next week is Friday’s gap that will act as the go or no-go reference.
An attempt to fill the gap that fails, will eye another breakout attempt from the multi-day balance range and send the market into another higher high above the balance.
If we fill the gap towards 5086, we want to see buyers stepping in and defend their positions for another rotation to the upside.
ES
Some of the key references we’ll be looking heading into next week”
Upside Levels: 5181/5194/5213
Downside Levels: 5119/5086/5072
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.