how to trade GDP news this week

January 21, 2024

Happy Sunday team.

Hope everyone is enjoying their weekend away from the charts.

We’ve got another action packed Sunday brief for you.

GDP on Thursday, Unemployment on Thursday, let’s jump in!

Impact Snapshot

  • Service/Manufacturing PMI - Wednesday

  • Q4 GDP - Thursday

  • Unemployment Claims - Thursday

  • PCE inflation - Friday

Market Evaluation

The S&P500 rose 1.2% this week to a record close amid strong gains in the technology sector and a bullish outlook from a chip-industry bellwether.

After a stunning rebound from 2022’s violent selloff, the resurgence is being powered by the so-called “Magnificent Seven” technology companies.

Investors hopes for artificial intelligence and cost-cutting efforts, fueled a profit boom at those firms. Tech has soared ahead of other S&P 500 sectors since the index bottomed

Key economic data expected next week will include a preliminary reading on Q4 gross domestic product on Thursday as well as the December personal consumption expenditures price index, a closely watched inflation reading.

Ultimate TradingView Suite

By utilizing our brand new TradingView Suite to compliment our indicators toolkit, we were able to find yet another high probability opportunity early in the Friday session, this time for Crude.

The indicators we’ve added in this template will work on any market. 

Markets Breakdown

The immediate focus tomorrow is maintaining activity above the 4857 which is the upper distribution formation that the market had in this new year high.

The main objective for the bulls is defending this area in order to prevent acceptance back bellow the multi-day consolidation area.

The previous resistance of the 4839s will now be seen as potential support for buyers to hold the market above if they want to continue the rally to the upside.

Acceptance back bellow 4839 will likely see rotational activity towards the other end of the upper distribution of the multi-day balance, which would imply rejection.

The market is awaiting the all important PCE inflation on Friday so be cautious before the release of that catalyst which is likely to offer another directional move.

ES

Key zones to look throughout the week ahead.

  • Upside Levels: 4901/4930/4963

  • Downside Levels: 4857/4839/4814

That’s all we got!

As always, all we ask in return for these free reports is that you share them with 1 or 2 friends.

We’ll see you on Tuesday!

-The QuantVue Team