open before tomorrow 9am - Sunday Brief

October 22, 2023

Evening traders.

We’re back again with a Big Sunday Brief to get you fully prepped for another week of trading.

We’ve got another action packed week lined up with PCE, Jobless claims, and more so let’s dive in!

Impact Snapshot

  • Manufacturing PMI - Tuesday

  • New Home Sales - Wednesday

  • Fed Chair Powell Speech - Wednesday

  • US Q3 GDP - Thursday

  • Initial Jobless Claims - Thursday

  • Pending Home Sales - Thursday

  • PCE Inflation Data - Friday

  • KEY earnings:   

Market Evaluation

An eventful week ahead that will offer plenty of catalysts and clues of where the market is heading next.

The main focus will be the key earnings of the big Tech reporting as well as the Fed's preferred inflation gauge, PCE inflation. 

Another key report is Thursday's release of the first estimate of third quarter GDP, which is expected to show the US economy grew at an annualized rate of 4.3%.

The Big Tech reports come at a critical time for markets as 16-year highs on Treasury yields and uncertainty around when the Fed will reach the peak of its interest rate hike cycle have weighed on stocks over the past month.

Last week, the Nasdaq fell more than 3% while the benchmark S&P 500 dropped more than 2% and slipped more than 1.6%.

Powell’s speech last week provided an update on the current state of the economy. He still sees inflation that's "too high" and could be threatened by the "very resilient economy."

Markets Breakdown

Throughout the last week, we kept mentioning the importance of looking at the value area shifts in the market and focus on acceptance/rejection inside the 2 key balance areas.

Our Friday report was a textbook play of the things we’ve been talking for over a week after the market broke out from the previous 5-Day balance and entered a state of imbalance, eyeing continuation back to the key 3-Day balance.

After breaking down bellow the 3-Day balance, market performed another lower low to close the week exactly at our point of reference. Read the update here.

The big Tech reports as well as the geopolitical events will play a very crucial role going into the next week.

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Next week we will monitor markets ability to find short-term balance back into the previous 3-Day balance for 2-way trading or downside continuation which can bring a rotation towards lower targets. We will update the points of reference daily on X.

Some key levels to look out for the week ahead:

  • Upside: 4278/4326

  • Downside Levels: 4223/4193

That’s all we got for you in this week’s Sunday brief.

As always, all we ask in return for these free reports is that IF you find value in them, share them with a friend!

We’ll see you again on Tuesday.

Cheers!

-The QuantVue Team