read me before trading this week

Morning team!

Switching things up today with a Monday report.

No time to waste before market open, let’s jump in!

Impact Snapshot

• ISM Services PMI - Monday

• Consumer Credit - Wednesday

• Unemployment Claims - Thursday

Market Evaluation

The S&P 500 index rose 1.4% last week to a fresh closing high, boosted by better-than-expected monthly jobs data and quarterly corporate earnings.

The gains came as a number of large companies including Apple, Mastercard, Amazon and Meta posted quarterly financial results above analysts expectations.

In the last week, some 68% of the S&P 500's components that reported quarterly results posted earnings above analysts' expectations.

Labor Department data on Friday showed stronger-than-expected job growth last month as hourly wages continued to accelerate.

It's something that makes investors nervous, as it may mean delaying rate cuts.

Non-farm payrolls rose by 353,000 in January, well above the consensus estimate for a 185,000 gain.

Economic reports will be on the lighter side next week, with ISM Services PMI today at 10:00am ET and Unemployment claims on Thursday as the main focus.

Ultimate TradingView Suite

Friday’s market report we’ve posted over on X Here gave plenty of opportunity early in the session as we were able to identify the reversal zone where the marker bounced off of to begin a beautiful trend-day. 

A pullback after a clear re-claim of the flip zone was a spot-on entry to follow up. 

With the use of our Tradingview Suite, coupled with the comprehensive insights provided by our market report since the overnight session and the advanced execution capabilities of QuantVue pro toolkit we successfully identified precise tick-perfect entry opportunities twice.

Markets Breakdown

Since last Sunday we’ve been talking about the poor high formation in the market at 4934 which made for a weak level with no excess. 

Despite the fact that the day after the market saw a considerable pullback, we have now retraced all the way back into new highs with Friday seeing a trend-day.

The market broke from the balance area and entered an imbalance state which is seeking acceptance towards new prices. 

After one of the most eventful weeks we’ve had in some time which was filled with economical reports paired with big earnings, market will have a lighter-side catalysts next week.

The main focus is to observe for acceptance of the new prices or the lack of.

The market fell short a couple ticks before taking on the 5000s. We have not yet witnessed acceptance above that zone.

Ideally, the market wants to start building value on the upper-side of Friday’s range in order to target continuation while a rejection will see us fall back inside the prior balance.

ES

The key points of interest for next week

• Upside Levels: 5001/5013/5021

• Downside Levels: 4956/4933/4919

That’s all we got!

We’ll see you tomorrow or Thursday.

Cheers.