Key ES Levels To Watch - Tuesday Brief

What’s up traders.

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

We dive into the ES levels we’ll be looking to trade, current geopolitical climate, and more so let’s jump right in…

Impact Snapshot

  • U.S. retail sales jump 0.7% in September, above forecast

Market Evaluation

Consumers showed surprising strength in September, boosting retail sales well above expectations despite worries over a weakening economy.

In terms of rising geopolitical tensions, they are likely to have a lasting impact only if there is a supply shock that adds to inflation concerns, or a demand shock that drives downward GDP revisions.

Bond yields increased alongside the dollar following robust economic data, strengthening the argument for the Federal Reserve to maintain elevated interest rates over an extended period.

Markets Breakdown

On our market update video on Sunday, we’ve highlighted the importance for the bulls to re-claim back above at the 3-Day balance in order to get another attempt to break out above the gap.

This was the scenario that played out on Monday as bulls managed to enter back again into the 4400s territory and started consolidating inside.

What was interesting in Monday’s session was the way that the market got up there without going thru much of a resistance after the fact that the Friday broke out of the balance.

The P-shaped formation on the profile is a showcase that this was likely a short covering day.

Short covering days usually have this P formation and they usually weaken the market because they take out the buy orders.

The way you cover a short is by buying. When a substantial amount of shorts have covered, that potential buying power underneath the market is no longer there.

ES

Our morning brief posted on the overnight session Here, offered an amazing opportunity on multiple confluences with an increase of positive volumes at the support and our Qwave indicator that managed to hold the downside pressure momentarily exactly like the brief saw it.

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

  • Upside Levels: 4422/4445/4465

  • Downside Levels: 4368/4356/4337

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

We’ll see you on Thursday!

-The QuantVue Team

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