Momentum traders in full control
Hey team.
We’re back with another market brief for you.
Let’s re-cap last week’s emotional sessions and see what’s next for the market!
Impact Snapshot
FOMC Meeting Minutes - Wednesday
Unemployment Claims - Thursday
Manufacturing/Services PMI - Thursday
Consumer Sentiment - Friday
Market Evaluation
The S&P 500 index climbed 1.5% this week, achieving its fourth consecutive weekly gain, fueled by investor optimism over signs of slowing consumer price inflation.
Of the world’s 20 largest stock markets, 14 have hit all-time highs recently.
In the US, the S&P500 and Nasdaq indexes hit records this week, while the Dow Jones Industrial Average crossed 40,000 for the first time ever.
Looming interest rate cuts, healthy economies and corporate earnings are driving the activity.
April’s Consumer Price Index report Wednesday provided welcome reassurance that inflation isn’t heating back up.
Data released this week showed the US seasonally adjusted consumer price index inflation, rose by 0.3% in April, below expectations for a 0.4%.
This week we’ll be paying close attention on FOMC Fed minutes due on Wednesday as well as the FED speakers throughout the week.
Introduction to Market Profiles
Markets Breakdown
On our last market report, our expectations for the market were a range formation around Wednesday’s CPI day as the market lacked catalysts.
Markets form ranges/balance and consolidate for some time. It usually takes some type of catalyst to break that balance and put the market on an imbalance state.
Sellers are on a low confidence state and the upside trend is intact. As we use to say, don’t fight trends and momentum. You’ll know the all time high well after the fact.
What we want to monitor heading into next week is an attempt to break from balance and find continuation. Strong continuation would see increased volume in the direction of the breakout.
SP500 (SPX) holding above it’s prior ATH at 5264 is a sign of further strength in the market and an area where buyers are likely to step in to defend.
Always important looking at SPX alongside ES for further clues of market activity.
ES
Key References we’ll be looking heading into next week.
Upside Levels: 5343/5358/5373
Downside Levels: 5298/5274/5263
That’s all we got!
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