Insights on Powell's Testimony, CPI Report, and Market Movements Ahead of the Week's Close - Support & Resistance Levels

Support & Resistance Levels

This Blog provides futures market outlook for different commodities and futures trading markets, mostly stock index futures, as well as support and resistance levels for Crude Oil futures, Gold futures, Euro currency and others. At times the daily trading blog will include educational information about different aspects of commodity and futures trading.

Insights on Powell’s Testimony, CPI Report, and Market Movements Ahead of the Week’s Close

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Heading into the last 2 trading days of the week!

By Mark O’Brien, Senior Broker

 

 

General:

 

The two-day testimony from Fed Chair Jerome Powell – in front of the Senate Banking Committee yesterday and the House Financial Services Committee today – is over.  Akin to required summer reading, traders are all ears listening for clues on the central bank’s outlook on the current economic environment and future interest rate policy.  The head of the central bank acknowledged the cooling job market and persistently high prices.  If chair Powell tipped his hand at all, he did indicate the Fed had made “considerable progress,” in quelling inflation over the last two years, though it still remains above the central bank’s 2% target.

 

From March 2022 to July 2023, the Fed raised its benchmark lending rate 11 times to a two-decade high of 5.3% to fight inflation, which peaked at 9.1% two years prior.  Those hikes increased the cost of consumer borrowing by raising rates for mortgages, auto loans and credit cards, among other forms of borrowing. The goal was to slow borrowing and spending and cool the economy.

 

Up next, the Bureau of Labor Statistics will release the latest Consumer Price Index report tomorrow at 7:30 A.M., Central Time, which measures the prices paid by consumers for a basket of consumer goods and services.  Economists see headline CPI slowing to 3% year-over-year growth.  Core CPI, which removes the volatile food and energy categories, is expected to hold steady at annualized growth of 3.4%. The Producer Price Index will be released Friday.

 

Indexes: 

 

The September S&P 500 stock index futures contract climbed to it latest all-time high today, currently ±5673.00 up 41.75 points / ± 0.75% – its 36th record high of the year.  The September Nasdaq futures contract followed suit, thrusting up ± 1% / ± 190 points to near 20,900.

 

General, Part 2: 

 

Take a look at the top returns for the first half of 2024 among major global financial assets.

In first place with a 22% return: Silver.  After the S&P 500 and NASDAQ in second and third place (two of the most actively traded futures contracts) the next four top returns came from commodities: WTI crude oil, Copper, Gold and Brent crude oil.

 

Daily Levels for July 11th, 2024

Economic Reports
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* This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.

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