Trading Economics: Market optimism of inflation dropping while labor market holding strong as seen in the data is leading to significant stock market gains. We saw Equity markets in the US surge to new highs last week as optimism led to major demand for risk assets.
Investors now await more US data and corporate earnings reports from major US firms this week for more clues on the economy.
Market Structure (Bullish) - Bullish MS (W,D,4H), 1H Ranging - I have a strong bullish bias here but being cautious at these levels as we are failing to break last week's highs at 15720. - I will need to see a pullback to better demand zones, or breaking above the high of day to show buyers are still strong.
Data in focus: - Retail Sales (8:30 AM) - Look for retail sales to show signs of consumer strength and behavior. This is a leading economic indicator as retail sales drive corporate earnings, inflation, etc. - High numbers = inflationary. Low numbers = disinflationary
Trade Ideas: - ABC BULLISH breakout above high of day (15719) - ABC BULLISH rejections at 1H BOS (15604) - ABC BULLISH rejections at 4H Demand zone (15555)
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