Earnings + FOMC = ??? 👀

Morning traders. Hope you’re all doing well this week.

Back with our Tuesday report. Once again, we’re on a Sunday, Tuesday, Thursday schedule for these.

Anyways…let’s dive in because we’ve got a week packed full of important events.

Impact Snapshot

• Key Earnings Today:

• U.S. consumer confidence hits its highest level in two years 

• Tomorrow : FOMC Rate Decision / Press Conference

Market Evaluation

Today will be one of the quarter’s biggest earnings days, with Microsoft and Alphabet are among firms to report results set for release after the closing bell. Expect AI and the cloud to feature heavily in both reports. DOW on Monday rose 0.5%, marking its 11th consecutive winning session. That was the highest level since April 2022 and had its highest close since February 2022. SP500 and the NASDAQ added 0.4% and 0.2%, respectively. ES was on a fairly range bound session with no major moves on either side.

This makes sense since traders appear unwilling to place big bets given the uncertainty over what outcome Federal Reserve and European Central Bank policymakers might produce, with the Fed’s potential policy path, especially, crucial for global markets. 

On Sunday’s newsletter we pointed out the Friday close as an inside day which further boosted the bullish sentiment for this upside but with no major progress towards a new higher high of the range.

Passive buyers were able to absorb the intense selling pressure at the open, which led to the construction of a weak bottom and a following reversal which was further pushed to the upside at the NY open. The most important day of the day of the week is tomorrow, where the FOMC rate decision at 2:00PM ET followed by the press conference at 2:30PM ET will exhibit for a strong volatile session across the markets.

The Federal Reserve is reaching a pivotal moment in its fight against inflation.

After more than a year of solid agreement that higher interest rates were needed, differences among policymakers have started to deepen as they weigh when to stop hiking and how long to keep rates elevated.

Market Breakdown

Today’s ON session started at the key pivot level of 4583 and made another attempt towards the 4593 resistance that we were watching.

After approaching the NY open, the market made a shift move for the downside which broke below 4583 and quickly retraced back up above after sellers failed to get acceptance below support.

We are still consolidating on the same range as yesterday and the longer it lasts, the more significant the move will be. (Daily plan posted on the ON session here)

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

• Main pivot: 4583 

• Upside Levels: 4595/4603/4619

• Downside Levels: 4573/4565/4557/4547

That’s all we got for you in this one.

BIG week ahead and all eyes on the FED.

We’ll see you Thursday!

Cheers.

-The QuantVue Team

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.