read me before trading this week
Hey team.
Hope everyone had a nice weekend away from the charts.
We’ve got another newsworthy week ahead with unemployment, PMI, and home sales so you don’t want to miss today’s brief.
Let’s breakdown the levels we’re looking at on ES 0.00%↑ in the week ahead.
Impact Snapshot
US stock markets will be closed on Monday for Presidents' Day
FED FOMC Minutes - Wednesday
Unemployment Claims - Thursday
Manufacturing PMI - Thursday
Existing Home Sales - Thursday
Market Evaluation
S&P500 posts first weekly loss since early January, slipping 0.4% this week, ending a winning steak that has lasted for most of 2024.
The recent pair of inflation reports has resulted in increased yields and heightened uncertainty surrounding the FOMC decision in 2024.
We’re stuck with persistent inflation at least through the first half of the year. That was confirmed in this week's CPI and PPI, both coming in above estimates.
Economic data this week will be on the lighter side with the key highlights being the FED FOMC Minutes and the key earnings of NVDA 0.00%↑ on Wednesday.
Markets Breakdown
The immediate focus early this week will be to monitor if the market has enough strength to maintain activity above 5000s.
Friday had signs of lost momentum as buyers failed to maintain any reasonable activity to find continuation above Thursday’s highs.
The market is on a 2-day balance right now and we have no excess at the highs which will be a key point of interest to watch at 5066.
The market can eye a range-bound activity until Wednesday which will likely be a volatile session as we have FOMC minutes followed by the all important NVDA earnings.
Remember, we only care where the market is building value, not where the price is going in a 5min candlestick.
The trend is still to the upside and we haven’t seen clear selling aggression to indicate a reversal as of right now.
ES
Key points of interest for next week.
Upside Levels: 5040/5075/5089
Downside Levels: 4997/4981/4971
That’s all we got for you.
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P.S. — if you haven’t watched our latest YT video on our quick scalping futures strategy, you can watch that here:
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