navigating the market chop 🎢

Morning team.

With a very bullish CPI and PPI print, and now a horrible jobless claims report, we’ve experienced some serious chop.

In today’s brief we share what to watch for and the levels we’ll be trading moving forward.

Let’s dive in…

Impact Snapshot

  • Jobless claims jump to highest level in three months

  • Philly Fed factory index rises to -5.9 in November from -9 in prior month

  • U.S. industrial output down 0.6% in October versus forecast of 0.4% decline

Market Evaluation

Stock market edged lower as treasuries climbed after data underscored a gradual economic slowdown, reinforcing speculation the Federal Reserve will end its most-aggressive hiking campaign in decades.

Continuing applications for US unemployment benefits rose to the highest level in almost two years, underscoring the increasing challenges unemployed workers are facing in finding new jobs.

After a very encouraging consumer price index reading on Tuesday, we have more evidence that inflation’s truly cooling.

The stock market rally over the past two days, it seems, was fueled by investors expectations that lower inflation readings will prompt the Federal Reserve to cut rates sooner rather than later.

Markets Breakdown

After an impressive rally, market found balance between the recent breakout from the gap that we’ve been talking about at 4440s.

After an attempt to breakout in the overnight session yesterday, market found great resistance in yet another gap left previously on 9/15.

The underlying structure of this market is very weak, filled with gaps to the upside.

It is not unlikely for the market to return and do some back filling and fill the gaps opened to the upside in order to find a “base” and start reclaiming higher zones.

We will look for potential long opportunities around the previous balance area if the market is looking to fall back to the prior multi-balance area and play the rotations.

ES

The market saw an upside attempt early in the session but any meaningful buying got absorbed with the session moving to the downside but still well within the balance area. We are looking to play rotations between the zones and pay attention to the value areas, not price.

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

  • Upside Levels: 4543/4554/4601

  • Downside Levels: 4501/4480/4443

That’s it for today’s post.

We’ll see you again on Sunday for the big market report!

Cheers.

-The QuantVue Team

P.S. — we recently launched our Prop Firm automation program using our QuantVue alerts. You can find the program information in our latest Discord announcement here.