Volatility Ahead
Hey team.
We've got another market brief on $ES for you.
Let’s re-cap today’s session and see what’s next for the market!
Impact Snapshot Tomorrow
PCE inflation - 8:30am
Chicago PMI - 9:45am
Revised Consumer Sentiment - 10:00am
Market Evaluation
U.S. stocks ended higher on Thursday, with the S&P 500 and Nasdaq scoring a three-session win streak ahead of the quarter's end.
Investors will be focused on Friday's PCE inflation report for May, as well as the end of a strong second quarter.
The U.S. economy’s performance in the first three months of the year didn’t look much better the third time around: The government’s latest estimate of first-quarter annual growth was lifted slightly to 1.4%.
Traders gearing up for the Fed’s favoured inflation gauge piled into Treasuries as several data points illustrated a downshift in growth tied to the central bank’s higher-for-longer stance.
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Markets Breakdown
The end of quarter paired with Fed’s favoured inflation gauge will see a change of theme in contrast of what we’ve been seeing the last couple of days.
We always say that markets range/balance until there is some type of catalyst to break out from that balance. The longer you spent and “coil” on a range, the more volatile the move out of it is going to be.
Today’s session kept the same theme that we’ve had since Monday with range-bound activity which remained within balance without enough conviction on either side to drive any major directional move.
Heading in tomorrow’s session we’ll be managing risk at 8:30am as the potential PCE number will see a directional swing which will likely be followed by another equal swing in the opposite direction which a common market behaviour at key economical releases.
ES
The targets we’ll be looking throughout the overnight:
Upside Levels: 5561/5573/5590
Downside Levels: 5518/5503/5482
That’s all we got!
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We’ll see you again on the next one!
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