more downside ahead?😳
Afternoon team.
We saw a yuuge selloff across markets today ahead of some heavy news and Powell’s testimony this week.
We breakdown the exact levels we’ll be trading, and more.
No time to waste. Let’s jump in!👇
Impact Snapshot
ISM service-sector gauge continues on soft pace of growth in February
Market Evaluation
Stocks faced downward pressure as three prominent technology giants experienced declines, while traders navigated through a blend of conflicting economic data leading up to Jerome Powell's testimony.
Investors digests the market’s recent rally to all-time highs, which has been powered by optimism around artificial intelligence.
Powell heading to Capitol Hill for his semiannual testimony before Congress tomorrow, where the Federal Reserve chief is expected to reiterate the lack of urgency to cut rates.
The economical reports tomorrow include Jolts Jobs and ADP Non-Farm Employment in addition to Powell’s testimony will shape a volatile session.
Markets Breakdown
The closing weakness of yesterday’s session carried over the overnight today, with both the Asia & European sessions trading well bellow yesterday’s lows.
As highlighted in our market report on X, that’s a clear rejection of new prices.
Opening outside previous day’s value area and bellow the low is generally a pretty bearish open as we’ve mentioned previously.
The gains from the breakout on Friday were wiped and the key thing we were monitoring is acceptance inside the previous range.
Acceptance inside a prior balance range will eye a potential rollover towards the other end of balance. We’ve been signaling this scenario since the start of the week.
We can see how once we found acceptance inside the prior range, we re-visit the high volume nodes and the POC which was also a key pivot of the day we’ve highlighted.
With a volatile session ahead, we will remain cautious as there is a lot of ground to cover for the downside if the market break bellow the balance lows with a gap remaining right bellow the balance range.
ES
The targets we look for until NY close & Targets to pay attention Tomorrow:
Upside Levels: 5089/5106/5132
Downside Levels: 5066/5044/5029
That’s all we got.
We’ll be back in your inbox on Thurday.
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.