how to trade futures this week

Happy Super Bowl Sunday team!

Hope everyone is getting ready to watch the big game.

We’ve got another pre-week market report to get you totally prepared for another week of trading.

Let’s jump in!

Impact Snapshot

• CPI Inflation - Tuesday

• Retail Sales - Thursday

• Unemployment Claims - Thursday

• Empire State Manufacturing Index - Thursday

• PPI Inflation - Thursday

Market Evaluation

The S&P500 closed above the 5,000 level for the first time, rising 1.4% last week to a new record, after a series of quarterly results that surpassed expectations and positively influenced investor sentiment.

A solid earnings season, easing inflation data and a resilient economy have charged 2024′s market rally.

Next week’s main focus on the economical reports front will be the January consumer price index on Tuesday and the January producer price index on Friday.

We’ll also monitor Fed officials speaking in the days following the CPI data, to gauge the timing of any future rate cut.

Markets Breakdown

Friday offered an amazing opportunity which we shared over on X around our daily contextual analysis. Read it Here, around 2 hours before the US open.

A comment we’ve shared in this report was this “if the EU session over extends itself, we will look for a pullback towards the settle.”

The market over extended itself with a swing high to hit the key area we’ve posted for the upside, followed by a complete gap closure (Retracement towards the settle) to correct the whole move with the settle pivot acting as the absolute bottom for the session.

Could we have possibly knew the sentiment of any news whatsoever? No. We were still looking at the same exact thing.

People following price without understanding context is the reason why we get liquidations to fuel these types of short covering rallies.

We’ve made a thread a while back explaining the exact reasoning and behavior of the market prior to high impact reports/events and how they are almost always followed by a swing high and an equal swing low the other way.

Read it here

An eventful week ahead of us with key catalysts for directional movements. The main focus on Monday’s open is monitoring for continuation or buyers exhaustion and rejection of new prices for a rotation towards the high volume nodes bellow. When the market is at all time highs, there is open space above, which is why we follow momentum using our indicator toolkit Q_Pro and adjust as the day goes by.

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Key points of interest for the week ahead.

• Upside Levels: 5051/5070/5089

• Downside Levels: 5034/5018/4997

That’s all we got!

Like, comment, and share this with a friend.

We’ll see you on Tuesday.

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.