read me before tomorrow - Sunday Brief

Happy Sunday traders.

We’re back again with another big Sunday report.

Should be another volatile week ahead with current geopolitical tensions so let’s get into it…

Impact Snapshot

  • NY Fed Manufacturing - (Mon.)

  • U.S. Retail Sales - (Tues.)

  • U.S. Housing Starts - (Wed.)

  • Fed Beige Book - (Wed.)

  • Initial Jobless Claims - (Thurs.)

  • Fed Manufacturing - (Thurs.)

  • Fed Chair Powell Speech - (Thurs.)

  • Key Earnings: , , ,

Market Evaluation

As conflict in the Middle East persists, traders are gearing up for another week of volatile price fluctuations. 

The ongoing turmoil is driving demand for safe-haven assets and compelling investors to reassess their perspectives on global interest rates.

In the upcoming week, corporate earnings will step into the spotlight after weeks of discussions from the Federal Reserve and the impact of increasing yields on stock market dynamics.

The latest economic indicators revealed a decrease in inflation, leading the market to speculate that the Federal Reserve might not increase interest rates during its November meeting.

However, stocks continued to face instability due to growing geopolitical uncertainties and the lingering consequences of sustained higher interest rates.

Markets Breakdown

An eventful week ahead for the markets with plenty of news reports and key earnings that will drive the prices in a volatile manner.

The main objective for the ES remains the same.

Last week, price failed to find acceptance 3 times at the same exact level approaching the gap.

Finding acceptance inside the gap will target the next continuation level above, not looking to spend much time once we are inside of it.

The worst case scenario for the market is to fall back bellow the 4300s. That can lead to acceptance into the previous 3-day range that can see a possible print of another lower low bellow.

Despite the market initiating a rally from the 3-day range bellow, the recent rejection and a break from the 3-day value area on Friday is definitely worth mentioning as a negative sign.

A consolidation bellow for another attempt can offer a successful breakout as long as the longer time frame traders get active trying to initiate a breakout from the gap.

ES

Some points of reference we will be looking going into the week ahead:

  • Upside Levels: 4422/4445/4465

  • Downside Levels: 4336/4301/4279

We hope you found some value in this week’s Sunday report.

If you did, all we ask is that you share this Substack with a friend!

We’ll see you on Tuesday.

-The QuantVue team