read this before market open - Big Sunday Brief

What’s up traders.

Your favorite futures analysts are back again with another juicy Sunday report to get you squared away for next week’s trading.

We’ve got Powell talking on Wednesday, jobless claims, and more so let’s dive right into how we’ll be trading this week!

Impact Snapshot

  • Consumer Credit Data - Tuesday

  • Fed Chair Powell Speech - Wednesday

  • 10-Year Bond Auction - Wednesday

  • Jobless Claims - Thursday

  • Fed Chair Powell Speech - Thursday

  • 30-Year Bond Auction - Wednesday

  • Consumer Sentiment - Friday

Market Evaluation

The stock market just finished its best week in almost a year, but lurking beneath the euphoric surface are fears about Corporate America’s profit outlook.

The rally continued after data released Friday showed the US economy added fewer-than-expected jobs in October while the unemployment rate unexpectedly rose.

The weaker-than-expected job growth is seen as reducing the likelihood of more rate increases.

On Wednesday, however, the stock market kicked off November with a relief rally as the Federal Open Market Committee held the target range for its federal funds rate steady and comments by Powell focused on progress on moving inflation lower. 

Investors saw that as a hint that the committee's rate increases may be ending.

Next week, there will be a number of speeches by Fed officials including Powell. Also, September data on consumer credit and wholesale inventories will be released.

Markets Breakdown

Friday’s session was a continuation to the upside on the exact manner of our bullish scenario after price found acceptance inside the multi-day balance area.

After successfully breaking and holding above the flip area of 4354, market continued it’s upside towards the targets of 4377/4394 where range bound activity took place.

With our indicators we’ve managed to catch a perfect play rotation with enough confluence which we’ve taken from the flip-area towards the first continuation target.

The main goal for the week ahead is markets ability to contain itself within the multi-day balance and eye another attempt to fill out the gap towards 4420s.

We will look at the two gaps left to the upside and market returning to fill them back up towards the lower end of the multi day balance and a possible attempt to finally breakout from the gap just above.

ES

The most important targets we look for in the week ahead:

  • Upside Levels: 4420/4444/4483

  • Downside Levels: 4339/4292/4258

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

Happy trading out there!

-The QuantVue Team