navigate this week like a pro

Afternoon traders.

We’re back again with another futures market brief.

We’ve got plenty to digest with CPI and the FED meeting this week.

Let’s hop into it…

Impact Snapshot

  • U.S. consumer price index rises 0.1% in November, above forecast.

Market Evaluation

Markets had a hard time finding solid ground after underwhelming inflation data reinforced speculation Federal Reserve will be in no rush to claim victory.

Traders trimmed their expectations for the Federal Reserve to aggressively ease monetary policy next year after a report on inflation that was largely in line with forecasts.

The rate of annual headline inflation improved again in today’s data, but core inflation remains elevated at double the Fed’s 2% target.

While markets continued to bet the Fed will be on hold tommorow, it’s important to be prepared for an eventfull session early with Core PPI at 8:30am and FOMC Press Conference at 2:30am.

Markets Breakdown

The eventful release of CPI performed a full gap closure on the overngiht session of the purple box which was left from a downside gap on 2th of Aug. 2023.

As we’ve mentioned throughout our newsletters as well as updates over on X, it’s not uncomon to see the market edging higher in andicipation of major economical reports.

This was the exact case as well for today with the market retracing back down to last Friday’s highs after we’ve seen this gap fill on the ON session.

The market is one good session away to make another higher high above 4733.

Tomorrow is shaped to be another economical heavy release day so we can see the market making up it’s descision of a clear re-claim above 700s or fall back build a base and eye another attempt.

On the downside we’ve want to see buyers stepping in to defend above 4631 to prevent acceptance back inside the lower multi-day range and on the upside, a clear acceptance above 700 can bring new year highs above 4733.

ES

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

  • Upside Levels: 4699/4712/4723

  • Downside Levels: 4657/4643/4631

That’s all we got.

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We’ll see you Thursday!

-The QuantVue Team