Key ES Levels To Watch - Thursday Brief

What’s up traders.

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

We dive into some key fundemendals that you need to know and point out some points of reference we will be looking to close the week.

Impact Snapshot

  • Jobless claims fall to 9-month low of 198,000

  • U.S. home sales fell in September to the lowest level since the Great Recession

Market Evaluation

Stocks declined as corporate earnings took center stage, with traders closely tracking the unfolding events in the Middle East. 

Applications for US unemployment benefits dropped to the lowest level since January as the labor market kept powering ahead.

Sales of previously owned US homes fell to the lowest level since 2010 as affordability worsened even further.

Yields on two-year Treasuries declined after Powell spoke, while 10-year yields pared an increase that pushed them near the 5% mark.

Powell acknowledged recent signs of cooling inflation, but said Thursday that the central bank would be “resolute” in its commitment to its 2% mandate.

After a short delay, Powell noted the labor market and economic growth may need to slow to ultimately achieve the Fed’s goal.

Markets Breakdown

Yesterday’s session was confined inside our morning brief reference points and saw a break from the previous 5-Day balance.

After a re-test of the major support at 4377 for 3 hours, sellers took control and broke down bellow and back into the Friday’s range as our bearish scenario was seeing it.

Consolidation bellow major support will see it act as resistance on the upside which was exactly as it happened with 4377 acting as resistance and any buying effort was completely shut off by passive sellers.

Market performed a range bound activity between 4377/4356 until it finally broke down and performed a lower low hitting our last continuation target at 4337.

It’s important to pay attention to where the value area is building up instead of the price itself.

ES

Thursday’s session was confined inside our range with the first major resistance acting as the perfect top point of reference that offered a beautiful play of 1%. The main goal remained the same, market got closer to the 3-Day balance after breaking out from the 4300s as our update was seeing it. Read our morning Brief posted several hours before the session here 

The key points of reference we will be looking moving forward:

  • Upside Levels: 4308/4351/4362

  • Downside Levels: 4289/4279/4263

If you enjoyed today’s brief, all we ask is that you share it with a friend.

We’ll see you on Sunday!

-The QuantVue Team