Markets ready to tumble? 📉👀

What’s up team. Back again with our Tuesday report.

It’s a crazy market we’re in right now with the FED hiking, markets at all time highs, consumer debt at record levels, and more.

Let’s break it all down below…

Impact Snapshot

• Key Earnings Today:

• ISM gauge of U.S. manufacturing rose in July

• U.S. quits rate and job openings moved lower in June

Market Evaluation

The rally on the markets which saw S&P500 reach a 16-month high lost momentum and struggled for direction on Monday. A pivotal role which added to this pullback was companies reporting disappointing earnings.

There is a clear concern about the durability of corporate earnings and questions about whether stocks can keep gaining.

With the S&P 500 now less than 5% away from an all-time high, there are signs that traders & investors are taking a pause before US employment report and earnings from the big and .

As we’ve mentioned on Sunday’s post, those will be the pivotal events to watch as the catalyst for the next move.

US factory activity contracted in July for a ninth-straight month, while US job openings fell in June to the lowest level since April 2021

Hiring fell to the lowest level since February 2021. But layoffs also declined to the lowest since the end of last year, suggesting employers are reticent to let go of staff.

European stocks slipped as factory activity shrank in the euro zone. Euro zone manufacturing activity fell in July at the fastest pace since the start of the start of the Covid-19 pandemic.

In the Asian markets, Japan's Nikkei ended higher amid a weaker yen and gains led by heavyweight chip related firms and Toyota Motor. Chinese stocks closed lower as investors grew skeptical about the country's stimulus policy.

Market Breakdown

Monday’s session was quite uneventful if we take into consideration it was the monthly close.

We ranged around the pivot of 4606 with no major continuation on either sides. We’ve added a brief of yesterday’s session with the ON plan here.

The plan for the day was to hold the QV’s pivot at 4606. After finding acceptance bellow, our bearish scenario was targeting the 4593 support which saw a pullback at the early hours of NY open, then quickly retraced back to the QV’s pivot. That was a good showcase of how we can spot the levels of interest and profit from these moves, in this case around a 0.30% back to the QV’s pivot. Update posted on X hereAs we always mention in our morning briefs, once we flip a support and get acceptance into the lows, it means that once we re-visit this area, it will be the key resistance to watch.

The same is true when flipping the resistance into support.

Currently, the first target of 4593 needs to hold as support in order to attempt to re-take the pivot at 4606 which saw clear rejection in the early session.The major level we must hold and not find acceptance bellow is 4584, bulls must defend this area. If we get accepted bellow this high volume area and lose the box we showcase in the chart, we can look at a pullback down to 4560s for the long term.

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

• Main pivot: 4593

• Upside Levels: 4609/4620/4632

• Downside Levels: 4584/4574/4558

That’s all we got for you in today’s Tuesday update.

Comment your thoughts on this crazy market below.

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We’ll see you Thursday!

-The QuantVue Team

Disclaimer: Futures and options trading carries a significant level of risk and may lead to substantial financial losses. The content provided in this newsletter is solely for informational purposes and should not be construed as a trade recommendation or financial advice. It is essential for readers to independently assess and make their own investment decisions, taking into consideration their personal financial situation and risk tolerance.