Read me before tomorrow's open
Hey traders.
We’re back again with the pre-week Sunday prep.
We cover the levels we’ll be trading this week and what to watch out for.
Let’s jump in!
Impact Snapshot
Consumer Confidence - Tuesday
Q4 GDP - Thursday
Unemployment Claims - Thursday
Consumer Sentiment - Thursday
PCE inflation - Friday
Good Friday Holiday - U.S. Stocks Closed
Market Evaluation
The S&P 500 index surged to fresh peaks this week following remarks from members of the Federal Reserve's policy-setting committee, affirming their anticipation of multiple rate cuts throughout the year.
The uptick occurred following the conclusion of a two-day Federal Open Market Committee meeting, during which the benchmark federal funds rate remained unchanged.
However, a slight majority of Fed officials reiterated their forecasts for three rate cuts within the year.
Next week, traders will be focused on a reading of Q4 gross domestic product, which is on Thursday, and the February personal consumption expenditures index on Friday.
Markets Breakdown
Many reports ago, we’ve said that the key thing to respect in the market is the trend.
One of the best ways to fight bias in the market is looking at where the market is sitting at the higher timeframes.
As visualized in the chart, the market had a weekly open that bounced on the exact channel bottom and continued to the upside until we hit the top of the channel.
Many people get caught up trying to cherry pick the all time high which leads into a market that is further fueled by short covering.
Trade the reality of what the market is doing. You’re better off being a little late than being early. Again, you’ll know the all time high well after the fact.
Moving on to next week, the prior all time high around 5255 will act as a key support for bulls to defend.
There is no clear excess at the new all time high so there are pretty good odds of the market having a strong attempt for a break.
ES
Key points of interest for next week.
Upside Levels: 5327/5343/5383
Downside Levels: 5255/5245/5231
That’s all we got for today.
Like, share this Substack, and we’ll see you Tuesday!
-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.