NASDAQ - Monday July 17
Trading Economics:
Following the drop in the US CPI report, the market is increasingly confident that we are heading towards a soft landing. Such expectations are also supported by the strong labor market, as we confirmed again by the US Jobless Claims last Thursday, and the rising consumer sentiment, as seen in the University of Michigan report last Friday. As long as the labor market continues to hold, we are likely to see new highs for the Nasdaq stock index.
We saw Equity markets in the US surge to new highs last week as this optimism led to major demand in risk assets. Market optimism of inflation dropping while labor market holding strong as seen in the data is leading to significant stock market gains.
Market Structure (Bullish):
- Bullish MS (W,D,4H); Bearish MS (1H)
- After printing impulsive new highs into the 15700's, we did see an aggressive pullback on friday to close the week.
- Regardless of the end of week pullback, bullish market structure still holds strong and my bias is clearly on the buy side.
Data in focus:
- NY Empire State Manufacturing Index (8:30)
- This data release is not one of the markets major focus, it should only have short-term impact if any.
Trade Ideas:
- ABC BULLISH Breakout above daily highs (15604)
- ABC BULLISH Rejections from 1H Demand zone (15540)
Trading Economics:
Following the drop in the US CPI report, the market is increasingly confident that we are heading towards a soft landing. Such expectations are also supported by the strong labor market, as we confirmed again by the US Jobless Claims last Thursday, and the rising consumer sentiment, as seen in the University of Michigan report last Friday. As long as the labor market continues to hold, we are likely to see new highs for the Nasdaq stock index.
We saw Equity markets in the US surge to new highs last week as this optimism led to major demand in risk assets. Market optimism of inflation dropping while labor market holding strong as seen in the data is leading to significant stock market gains.
Market Structure (Bullish):
- Bullish MS (W,D,4H); Bearish MS (1H)
- After printing impulsive new highs into the 15700's, we did see an aggressive pullback on friday to close the week.
- Regardless of the end of week pullback, bullish market structure still holds strong and my bias is clearly on the buy side.
Data in focus:
- NY Empire State Manufacturing Index (8:30)
- This data release is not one of the markets major focus, it should only have short-term impact if any.
Trade Ideas:
- ABC BULLISH Breakout above daily highs (15604)
- ABC BULLISH Rejections from 1H Demand zone (15540)