Markets SLOWING DOWN Ahead of PCE Inflation
Why It Matters
Investors need to gauge whether upcoming macro data will disrupt the current bullish trend, as the market’s ability to hold key support levels will dictate short‑term positioning and risk management.
Key Takeaways
- •Market indices show slight slowdown, but overall bullish momentum persists.
- •SPY and QQQ near all‑time highs, eyeing higher lows.
- •Upcoming PCE, GDP, and jobs data could trigger short‑term volatility.
- •Positive earnings from Meta, Snowflake and other tech boost market optimism.
- •Base case: consolidation or continuation, not a major market reversal.
Summary
The Trade Brigade Midweek Show focuses on a modest slowdown in index‑level activity as markets await tomorrow’s PCE inflation report, alongside a slew of macro data releases. Despite a temporary dip in semiconductor momentum, the S&P 500 (SPY) and Nasdaq 100 (QQQ) remain perched at fresh all‑time highs, with analysts watching key support zones around 743.50 for SPY and 714.65 for QQQ.
Matt highlights that today’s daily hammer candle and strong close in the upper third of the range suggest sellers failed to break lower lows, reinforcing a bullish bias. He points to a confluence of technical levels—Fibonacci 38.2%, anchored VWAPs, and the 20‑day SMA—clustered near the aforementioned support points, framing the base case as either a brief consolidation or a continuation rally. Positive catalysts such as Meta’s new paid tier, Snowflake’s earnings beat, and broader tech strength further buttress the upside outlook.
A notable quote from the host underscores his stance: “It’s been profitable to stay optimistic in this market until proven otherwise.” He also references market internals—steady volume inflows, a positive advance‑decline line, and a bullish market profile—indicating underlying health despite sector‑specific fatigue. The only tangible threat he flags is a “failed breakout” below the 2‑day balance range, which could trigger a short‑term pullback toward 732.25.
Overall, the analysis suggests that unless tomorrow’s inflation and GDP numbers dramatically surprise, the market is likely to maintain its upward trajectory, using higher‑low pullbacks as stepping stones to new highs. Traders are advised to monitor the identified support zones and be prepared for volatility around the data releases, but the prevailing narrative remains one of continued bullish momentum.
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