Middle East induced recession? 👀

Morning team!

We’re back again with another market brief as we head into PPI and FED minutes tomorrow.

We cover exactly what we’re looking for and how to trade it, so let’s dive in…

Impact Snapshot

  • Tomorrow: PPI Inflation / FED FOMC minutes

Market Evaluation

Global markets rose as Treasury yields & U.S. Dollar fell after comments from Federal Reserve officials bolstered speculation the central bank is heading toward another pause in interest rate hikes.

Another upside continuation early in the session offered plenty of opportunity but the economical news that will play a pivotal role for what’s next are starting to hit the market from tomorrow until Friday, which will also mark the next earnings season.

Markets Breakdown

Monday’s open was paired with relatively low-volume as the bank holiday was taking place but that did not stop price action doing what it always does.

Many people lose confidence in the market once they read a headline on the news and think the market will crash.

Not quite how it works if you’re day-trading the markets.

Our plan was seeing continuation if there was enough momentum to fill up the gap that has opened since the overnight session.

After successfully re-claiming the Friday’s close, enough volume and momentum triggered the next upside continuation towards our final target for the session which was at 4374.

We’ve talked about gap fills and the odds of that being a scenario for a while now.

If the market was really that weak, it would not make an attempt to fill that gap let alone re-claim it with high volume inflow.

It’s all about patience and waiting to see confirmation and strength/weakness in the market. Market topped exactly out our level of interest at 4374 for the session.

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We are approaching the gap highlighted on the chart we are sharing here as well. If we find acceptance inside the gap, we can expect to trade until the other side of it. Bearish scenario would be to fall back down towards the pivot and especially anywhere close to the 4300.

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

  • Upside Levels: 4420/4443/4465

  • Downside Levels: 4390/4357/4300

That’s all we got for today’s Tuesday brief.

We’ll be back again on Thursday before the week wraps up.

Enjoy the rest of your day!

-The QuantVue Team