Bulls strike back - where do we go now?

August 29, 2023

Morning traders.

We’ve got ourselves quite the report for you guys as some HOT data sent markets flying this morning.

Let’s get into this one…

Impact Snapshot

  • U.S. job openings drop to lowest level since March 2021

  • U.S. consumer confidence retreating from two-year high in August

  • Earnings:

Market Evaluation

Strong economic data boosted stocks across the globe.

US job openings fell by more than expected to 8.83 million, a more than two-year low, extending a re-balancing in the labor market that will help restrain price pressures.

U.S. Stocks rose, while bond yields fell after economic reports bolstered speculation the Federal Reserve will be able to pause its interest-rate hikes in September.

European stock markets were higher on Tuesday, tracking global counterparts as investors look ahead to a fresh round of economic data this week.

Asia-Pacific markets rose across the board as Wall Street came off a winning day on Monday.

The US Dollar came under selling pressure with the immediate reaction and the US Dollar Index turned negative.

Treasury two-year yields, which are more sensitive to imminent policy moves, dropped 15 basis points to 4.9%.

Markets Breakdown

Monday’s session remained relatively uneventful. Most of the overnight session ranged inside the fair value of the open and slowly edged higher before the NY open.

The NY session opened with a gap to the upside which made an attempt to find acceptance above our last upside target of 4442 but failed.

The price rejected 3 times from the same exact zone above 4442 and ranged between our upside targets of 4442 and 4431 with no meaningful continuation.

We’ve had 4442 as the final upside targets because acceptance above would mean trying to reach the higher distribution which would take of an aggressive buying activity to achieve.

Taking into account that Monday would be a no-news day to play the catalyst role, trying to aim above strong resistances with no volume wouldn’t make much sense.

Make sure you check out our Weekly plan where we’ve pointed out the higher time frame zones you need to observe.

As we always mention, for the markets to move, it usually takes a catalyst.

In today’s session for ES, the overnight session remained uneventful and in balance.

Markets opened on the upside in the NY session and the report of U.S. job openings which we highlighted on our overnight post to look out for, brought strong continuation to the upside at 10:00AM ET.

The targets we were looking for continuation above on the overnight session were the 4469/4458 which successfully hit and we will be looking for them to on the pullbacks.

ES

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

  • Main pivot: 4440

  • Upside Levels: 4486/4493/4505

  • Downside Levels: 4426/4411/4402

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That’s it for today’s report. We’ll see you Thursday!