read this before 4pm EST Thursday

Afternoon traders.

Your favorite TradingView vendor / market analysts back again with another Thursday brief.

We got another juicy one lined up for you — GPD, jobless claims, and Powell at 4pm…

Let’s dive in!

Impact Snapshot

  • Jobless claims stay extremely low at 204,000. No sign of rising unemployment

  • U.S. second-quarter GDP unchanged at 2.1% growth

  • Fed Chair Powell Speaks - 4:00PM ET.

Market Evaluation

A global bond selloff deepened on Thursday amid speculation that central banks from the US to Europe are poised to keep interest rates elevated.

Dovish-leaning comments from a Federal Reserve official and weak consumer spending data failed to turnaround sentiment as the US session got underway.

The yield on the benchmark U.S. 10-year Treasury hit a fresh 15-year high as data out Thursday showed a still resilient labor market with jobless claims coming in less than expected.

Eyes on Fed Chair Jerome Powell town hall meeting with educators while Richmond Fed President Tom Barkin speaks today at 4:00PM ET.

Markets Breakdown

An emotional session lead to a short-covering rally at the end of it could be the way to describe yesterday’s auction.

You’ve heard us say this before, “when a market is too short, it strengthens the market”. Session opened with an upside gap and a further fade to the upside with no steam, lead to a brief bounce at our key pivot of the day at 4315.

After no meaningful continuation to the upside, market started trending to the downside for the most of the session seeing brief relief bounces at the levels we posted towards 4301/4291.

Market found a bottom at 4277 and quickly retraced back up, on a shift move that squeezed every shorts sitting above it.

As we’ve said over on twitter here , there is no such thing as overbought or oversold markets.

Shorts kept trying to sell the upside and bulls kept jumping in the trending momentum leading to a short covering fueled rally and a full V shape recovery back above at the opening prices.

ES

Overnight session ranged within the upside value area of yesterday’s session. Bulls need to keep holding above today’s pivot at 4314 to find reasonable continuation above. 

Important zones we will be watching till the end of the week.

  • Upside Levels: 4336/4356/4400

  • Downside Levels: 4283/4270/4238

That’s all we got for you on this fine Thursday.

See you on Sunday for our big market report!

-QuantVue Team

P.S. — we posted a COMPLETE guide on how to AUTOMATE our QuantVue indicator alerts today on our YouTub. Watch that here: