read before 9:30am tomorrow 🫡

What’s up traders.

We’ve got another big Sunday brief for you all before we enter another action packed week of trading.

We’ve got CPI and PPI this week so no time to waste.

Let’s jump into it…

Impact Snapshot

  • CPI Inflation - Tuesday

  • PPI Inflation - Wednesday

  • Retail Sales - Wednesday

  • NY Fed Manufacturing - Wednesday

  • Jobless Claims - Thursday

  • Industrial Production - Thursday

  • Building Permits - Friday

  • Housing Starts - Friday

Market Evaluation

Last week saw a continuation of the stock market's recovery with a Friday rally that sent the major US indexes to their highest closing levels in nearly two months.

In the week ahead, traders will face a schedule full of updates on the health of the US consumer as the holiday shopping season kicks into high gear.

Tuesday's CPI data will offer a key update on the central bank's fight with inflation.

The October CPI report will bring investors a key inflation reading after several Federal Reserve officials last week tried to keep the door open for future rate hikes.

Last week, Federal Reserve Chair Jerome Powell cast some doubt on expectations the central bank will be content to hold interest rates steady in the coming months. 

Saying at an IMF event on Thursday, "If it becomes appropriate to tighten policy further, we will not hesitate to do so."

News late Friday that Moody's had changed its outlook on the US government's debt to "negative" from "stable" will also draw traders attention, as elevated interest rates raise the cost of servicing the government's growing debt pile.

Markets Breakdown

After a fairly uneventful start of the week due to lack of economical reports, Friday showcased the first attempt to break from the multi-day balance area.

The market had a week of range-bound activity that lasted 5 days, with last Friday eyeing the attempt to breakout and go thrue the previous gap which was opened on 9/21 which the market failed several times to break out from.

We partially filled up the gap with price closing on Friday inside of it.

Above the gap we, we have a fair bit of reclaiming in order to find acceptance into the higher timeframe balance areas.

The most important level of this whole chart will be the 4400 and market’s ability to use it as support on potential pullback.

Thruout the whole week, market failed to find clear acceptance above the 4400s with Friday changing that and once it did, it found continuation right thrue the gap.

On our previous X videos we’ve talked the market structure bellow the corrent balance area is pretty weak with about 3 upside gaps that have not been filled.

The healthy structure would be a pullback to repair the underlying structure and create a base in order to start reclaiming the areas above.

After the market’s close, we’ve had the Moody’s changed outlook on the US goverment so we have yet to see how the market will react to this information.

ES

The targets we look for the week ahead:

  • Upside Levels: 4400/4373/4352

  • Downside Levels: 4443/4482/4508

That’s all for today’s Sunday report.

We’ll see you all again on Tuesday!

As always, if you enjoy these reports all we ask is that you share them with a friend!

Enjoy the rest of your Sunday.

-The QuantVue Team