navigate the market chop 📊 - Tuesday brief

September 05, 2023

What’s up traders.

We hope you all enjoyed the long Labor Day weekend (if you’re here in the states).

Back again with our Tuesday report.

Let’s jump into this one…

Impact Snapshot

Pay attention to the following events Tomorrow:

  • ISM Services PMI - 10:00AM ET

  • FED Beige Book - 2:00PM ET

  • Earnings:

Market Evaluation

Stocks fell as Treasury yields rose and the dollar hit the highest since March, with traders betting interest rates will remain elevated even if the Federal Reserve halts its tightening cycle this month.

European stock markets were mixed on Tuesday, as a boost from Chinese stimulus measures faded.

Asia-Pacific markets fell as Australia’s central bank’s held its benchmark policy rate at 4.1% for the third straight month in a row and investors assessed inflation and business activity readings from across the region.

September is the worst month of the year for US equities, but a host of positive market signals suggest it may not be so bad this time around. 

While seasonal trends place September in last place for stock market performance, returns have been most robust in times the S&P 500 gained between 10% and 20% year-to-date through August.

The early winners in artificial intelligence have strong fundamentals and less extreme valuations compared with stocks seen in previous periods of exuberance.

We will monitor closely the market’s reaction tomorrow with the ISM services PMI as well as Fed Beige Book.

As always, remember to listen to the market. Historical reports can rob a short-term trader from their objective.

Markets Breakdown

The NY session Tuesday opened with a counter auction to the overnight inventory which saw the price touch our pivot of 4501 again.

Our Overnight Twitter(X) post pivot highlighted the importance of holding above 4501. Sellers took control at the open and pushed the prices lower.

This level offered a pullback zones of interest twice at the time of this post which offered an upside move of 0.44% on the overnight session and a 0.28% on the NY session at time of writing this report.

The market is now on a 4-day balance and we will look for clues for the next market direction once our levels of interest get flipped.

ES

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

  • Main pivot: 4500

  • Upside Levels: 4528/4557/4619

  • Downside Levels: 4489/4458/4420

That’s it for Tuesday’s report.

Be sure to reply or comment on this post your thoughts on the current market and where you think we’re headed!

We’ll see you on Thursday.

Cheers!

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