how we're trading this selloff 📉

Morning team.

What a morning we’ve had with equities in a broad sell-off on the back of a hot JOLT report.

We go over exactly how we’ll look to trade this week.

Let’s dive in!

Impact Snapshot

• US Job Openings Top All Forecasts

Market Evaluation

US job openings unexpectedly increased in August, fueled by a surge in white-collar postings, highlighting the durability of labor demand.

The S&P 500 and Nasdaq indexes fell more than 1% after Tuesday data showing the number of available positions rose to 9.61 million from less than 9 million in July.

One of the most important correlation we keep mentioning is the rising Yields as well as a stronger U.S. dollar compared to the stock market.

Treasury yields hit highest levels last seen 16-years ago and U.S. Dollar hit November highs further fueling this downside continuation.

Markets Breakdown

Monday’s session ranged within the Friday’s value area and closed within the same zone as Friday, further indicating uncertainty from traders.

The pressure from the rising yields and dollar further influenced the market to continue the downtrend going into today’s session.

As we’ve written in the weekly report, the market is trying to find acceptance between two major distributions.

Today’s session further indicated that the market had lost strength after loosing all the points of reference which started since the overnight session. Like we always say, this market is not going anywhere without the permission of Yields and Dollar which we would need a cool-off in order to spot upside continuation.

Today’s pivot was at 4308. Like we’ve written on the market brief, “If market has any strength, it must hold above.” 

The moment this market broke a strong point of reference, we are not looking to buy it until we get actual confirmation. It's simply not worth the risk.

If the market breaks a major support/resistance and price finds acceptance into the range bellow/above, you would not want to counter trade the price action.

Unless there is meaningful amount of time spend inside the range above the resistance, it will not be acting as support on the way back up again.

ES

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

• Upside Levels: 4314/4335/4365

• Downside Levels: 4252/4218/4189

That’s all we got today.

We’ll see you on Thursday!

Good luck out there traders.

-The QuantVue Team

P.S. — heres our latest YouTube video where we breakdown a simple 5-minute scalping strategy: