5,000 s&p HAS to be the top...right??

Afternoon team.

We’re back in your inbox with another futures market brief.

No time to waste, let’s jump into the items & levels we’ll be watching this week & next!

Impact Snapshot

• Jobless claims fall to 218,000 and show layoffs still very low

Market Evaluation

S&P 500 on the brink of breaching the 5,000 milestone for the first time ever in a rally that was once again driven by a narrower group of shares.

The stocks leading the major average higher are the biggest members of the benchmark average.

This can be seen in recent market action with Nvidia and Meta both up double digits in the last five trading sessions alone.

Earnings continue to come in better than expected, and contribute to some pretty positive moves in specific stocks

US initial jobless claims fell for the first time in three weeks, adding to evidence of a still strong labor market and giving support to the recent cautious statements made by central bank officials.

Markets Breakdown

As we’ve highlighted in today’s morning report over on X, one of the key things that traders get caught up is not respecting the trend.

The trend is clearly to the upside. The amount of short covering that has fueled this rally is quite impressive.

What is important in the market is not what we think, nor what our biases are. It is what the other people in the market are doing.

If enough people in the market think it’s going up then it’s going up. If enough people in the market think it’s going down then it’s going down.

Whether we think that the trend is strong or weak, it’s irrelevant to the short time day trader. The market is on all time highs, you’ll know the all-time high top well after the fact.

After yesterday’s breakout the market is on consolidation mode. Balance is market’s mechanism for communicating that it wants more information prior to beginning it’s next directional move.

And that information will begin next with as a slew of economical reports including CPI will offer catalysts that will see some directional movement.

ES

The targets we look for until NY close & Targets to pay attention Tomorrow:

• Upside Levels: 5015/5030/5040

• Downside Levels: 4996/4976/4963

That’s it for today’s brief.

We’ll see you on Sunday!

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.