the $ES levels we're watching this week!
Afternoon team.
In today’s brief we share the levels on ES 0.00%↑ we’ll be trading and important news that markets are digesting.
No time to waste, let’s jump in.
Impact Snapshot
Consumer confidence dips in March on more pessimism about the future of the economy
Market Evaluation
The stock market failed to hold on to earlier gains after a rally that’s already topped $4 trillion this year, with NVDA 0.00%↑ leading losses in tech megacaps.
The S&P 500 is on track to notch five straight months of gains from November through March , a feat only accomplished one other time this century in 2013.
The rise has been aided by an economy that has exceeded expectations, forward corporate earnings estimates that have moved to record highs, technology leadership, and expectations that the Federal Reserve will start lowering short-term rates later this year.
Consumer confidence tends to signal whether the economy is getting better or worse. Confidence has improved considerably since late last year thanks to slowing inflation, but it’s still well below the pre-pandemic high.
Sierra Chart Suite
One of the best ways to find high probability setups is combining confluences. With the Sierra Suite toolkit, we’ve added a liquidity heatmap to observe where strong market participants are entering the market in real time with their limit orders.
As seen in the heatmap on the left, we can see a limit order wall formation and once the market touched this exact level, we’ve had a pullback which was further confirmed as a potential entry from our toolkit on the right.
Markets Breakdown
Early this morning on our market report we’ve shared on X here, we highlighted the importance of looking for “safer entries”.
At the time of that post, the market was in the overnight session just a few ticks bellow the psychological resistance of 5300s.
When looking for opportunities to enter the market, it’s very important to understand what the current market situation is and where the price is ranging.
Simply put, that comment we’ve made was a reference that it would be “high risk” to enter a long, just below the key resistance we’ve marked and we were expecting a pullback for “safer entry” in the market.
Right after the post the market has pulled back towards our key point of reference at 5288 and has ranged for most of the session before a major pullback that broke below the settle, wiping all early session gains.
ES
Targets to pay attention Tomorrow:
Upside Levels: 5284/5303/5317
Downside Levels: 5255/5245/5228
That’s all we got.
We’ll see you on Thursday!
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.