don't trade tomorrow without reading this

Evening traders.

We’re back again with a BIG Sunday report.

We have one hell of a week lined up with CPI, PPI, FED decision, and more so let’s not mess around and dive right in…

Impact Snapshot

• CPI Inflation - Tuesday

• PPI Inflation - Wednesday

• Federal Funds Rate - Wednesday

• Retail Sales - Thursday

• Jobless Claims - Thursday

• NY Fed Manufacturing index - Friday

• Services/ Manufacturing PMI - Friday

Market Evaluation

The SP500 rose for the sixth straight week, the longest rally since November 2019.

Unemployment declined more than economists had predicted, showing continued strength in the labor market.

Last week, Fed Chair Jerome Powell said that it would be "premature" to "speculate" when interest-rate cuts may begin as the FOMC is ready to tighten policy further, if needed.

The committee has increased interest rates by 525 basis points since March 2022 in a bid to combat inflation, with its last hike coming in July this year.

On Wednesday, the Fed will announce its final policy decision of the year, with markets pricing in a near 100% chance the central bank keeps interest rates unchanged in a range of 5.25%-5.50% to cap 2023.

Next week's calendar also includes reports on retail sales and industrial production for November, as well as the New York Fed's Empire State manufacturing index for this month.

All eyes will be on Tuesday and Wednesday where volatility is expected to hit the markets with the CPI & PPI inflation as well the FOMC Press Conference.

Markets Breakdown

Next week’s economical reports will provide the catalysts that the market needs for it’s next directional move.

On Friday, we’ve highlighted the importance of looking for “change” in the market rather than chasing price.

Our flip zone of 4608 which was sitting right above the previous weekly highs offered extreme opportunity with the confluence of our indicators.

The underlying structure of this market is very weak and the close on Friday did was not particularly strong in nature.

Unless the market starts to build value above the multi-day balance area, there is no change on the range-bound activity that can see rotations between the extremes.

On the upside, we will look at a clear claim of the flip zone on the chart bellow and starting to see volume picking up to break out from the purple zone.

The downside will see a rotation towards the bottom of the orange box and potentially acceptance back inside the previous short-term balance area (blue box).

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Key areas to watch heading into the next week.

• Upside Levels: 4675/4697/4712

• Downside Levels: 4631/4594/4583

That’s all we got for today.

We’ll see you in the next brief of Tuesday.

Cheers!

-The QuantVue Team