the $ES levels we'll be watching 👀
Afternoon traders.
Your favorite futures analysts back in your inbox again.
We break down the latest CPI, PPI, and our exact trade levels we’re watching.
Let’s jump in!
Impact Snapshot
Jobless claims retreat again to 211,000 in another sign of labor-market strength
At 2.1%, annual PPI is now back at the highest level since September 2023
Market Evaluation
Stocks inched upward as major players on Wall Street prepared to announce earnings, putting this year's market resilience to the test.
Earning season kicks into full swing Friday WFC 0.00%↑ JPM 0.00%↑ C 0.00%↑ banks being the main focus to close the week.
Anticipated profit growth for S&P 500 companies is set to climb for a second consecutive quarter, driven by a robust economy and strong consumer demand.
The producer price index reading for March came in below estimates, providing some relief after Wednesday’s sell-off on a faster-than-expected rise in prices for consumer goods and services.
With banks slated to unofficially kick off first-quarter earnings this week, their results will be watched closely to see whether growth can justify an S&P 500 price-earnings ratio that’s roughly 20% above its 10-year average.
Sierra Chart Suite
Being able to identify key reversal zones in real-time requires the right toolkit.
On this practical example, we could spot the previous low auto-pivot from our Sierra Suite liquidity heatmap, grabbing the attention of strong passive buyers looking to defend this area and take the market higher.
We could see this “cluster” zone formation since the ON open. Aggressive sellers were met with strong passive buyers which formed a solid support zone for the market.
Increased volume at the lows in addition to negative delta and the price not moving is a strong indication of absorption and a reversal follow up in sight further influenced by trapped shorts looking to cover their positions.
Markets Breakdown
After a breakdown on the due to a hot CPI inflation read, the market failed to find downside continuation follow up both on yesterday’s US session as well as today.
As stated in our pre-market plan early this morning here, monitoring for continuation or the lack of would be the key theme of the day to target prior gap close.
A tick-perfect bounce from our key pivot we shared at 5181 gave a perfect entry opportunity with the added confluence from our indicators, see update here.
Short covering is one of the biggest triggers that can make good recoveries on an overly short market.
Many traders get too focused on one piece of information and they trade aggressively around it with a bias, in this case, a hot CPI inflation read. You don’t take the CPI inflation number to the bank.
Day trading involves timing the market for key opportunities on the exact manner we highlight them on a daily basis over on X as well as using market context to not over extent on unfavorable locations.
ES
The targets we look early in the US open tomorrow:
Upside Levels: 5248/5263/5282
Downside Levels: 5207/5181/5169
That’s all we got for you in this one.
We’ll see you again on Sunday.
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.