how we're trading futures in February

Afternoon team.

Your favorite futures analysts are back again with another market report.

the bulls are in total control to start the year with no signs of letting off the gas.

We breakdown how we’ll be trading ES and NQ this month.

Let’s dive right in!

Impact Snapshot

• US factory gauge climbs to highest since 2022 on orders growth

• Jobless claims rise to two-month high as labor market cools

Market Evaluation

The positive momentum in several of the world's largest technology firms lifted US stocks, as investors are anticipating the jobs report scheduled for Friday.

The market is coming off a poor session from yesterday, with all major indices posting biggest losses since later last year.

Those losses come after Fed Chair Jerome Powell in his post-meeting conference discouraged investor hopes for a rate cut as soon as March.

This was nothing but a return to reality after the hawkish fed remarks. Markets had factored in 8 rate cuts this year that would begin in March.

The optimistic valuations of the market since late last year now needs to adjust with the new reality.

All eyes are on the Non-Farm Payrolls tomorrow at 8:30am ET which will shape for another volatile day to close one of the most eventful weeks we’ve seen in some time.

Markets Breakdown

The market saw a correction to the downside yesterday without the follow-up momentum to support continuation.

We’ve said many times before, once you enter a balance area, there is a pretty good chance to rotate towards the other end of it which is what this market has gotten yesterday.

The last pivot we’ve shared yesterday was sitting at the edge of this higher timeframe balance and acted as the absolute bottom of the session at 4867.

As stated on yesterday’s video over on X nothing was over. We’ve had this market build value inside the previous range until the very last hour of the day.

The markets today simply made a return back to the higher timeframe value area. That’s the difference between following price and looking where the market spends time and builds “value”

ES

Targets to pay attention Tomorrow:

• Upside Levels: 4945/4966/4974

• Downside Levels: 4909/4858/4836

That’s it for today.

We’ll see you Sunday!

Oh, and like this post + share it with a friend if you know what’s good for ya.

Cheers!

-The QuantVue Team