Good evening. The S&P 500 ended up 3.9% on the week after a splurry of good economic data numbers and it does not look like it’s stopping either. We’re at the end of the earning season and volatility has dropped significantly from the beginning of August. Here are the top stocks to watch this week and what’s moving the markets.

👋 Also welcome to the 117 new members who have joined since last Sunday! If you haven’t subscribed yet, join other traders & financial enthusiasts who have decided to get smarter with Illyrian News.

Top Stocks & Setups To Watch This Week

• $NVDA
Break above 126.36 🎯 132.84 & 139.80
• $DKNG
Break above 34.40 🎯 35.49 & 37.40
• $GOOGL
Break above 165.07 🎯 168.51 & 172.65
• $MSFT
Break below 416.86 🎯 409.57 & 402.26
• $META
Break below 515.95 🎯 502.30 & 488.92
• $COIN
Break above 207.82 🎯 223.03 & 239.90

KV’s S&P 500 Analysis

KV here with your weekly SPY levels! Another strong week for the S&P 500 being up almost 4% for the week and over 16% for the year. The price has broken the downtrendline and held last week, so there’s not much stopping this from reaching all-time highs again. There are two gaps close to the current price which you can take advantage of this week whether the price goes higher or lower.

Weekly Market Recap

Easing Inflation

Recent inflation data continues to surprise to the downside, with both PPI and CPI inflation coming in below expectations for July. Headline CPI inflation is now at its lowest for the year, and lower monthly prices were seen across several categories. Despite some areas like shelter and insurance remaining high, the overall trend suggests further easing in inflation, bringing us closer to the Fed's 2% target, which is a positive for both consumers and the Fed.

Positive Economic Signals

Concerns about a potential recession were eased by better-than-expected economic data following a weak July jobs report. Retail sales showed strong growth, indicating that the U.S. consumer remains healthy and optimistic. Additionally, jobless claims have been declining, suggesting that the labor market is stabilizing. These positive indicators help to remove fears of a rapidly deteriorating economy and provide a more optimistic outlook as we move into the latter part of the third quarter.

Impact on Fed

The recent softer inflation data and improving economic indicators suggest that the Fed may begin cutting rates at the September 18 FOMC meeting. Markets have responded positively, with the S&P 500 rebounding and volatility decreasing. As we approach a potential period of Fed rate cuts, market leadership could broaden beyond technology and growth sectors, favoring diversification. Despite seasonal market fluctuations, the combination of easing inflation and stable economic growth could support continued market strength.

Coming Up…

Important economic releases this week include the LEI index and the PMI composite. On the earnings front, PANW, SNOW, TGT, BIDU, ZM, LOW, and PTON are expected to report this week.

Key Headlines We’ve Been Reading

This is what’s caught our eye over the past 7 days.

• ECB to cut key rate six times by end of 2025.
• Foreign investors pull record amount of money from China.
• Donald Trump's live chat with Elon Musk on X plagued with glitches.
• US considers rare antitrust move: Breaking up Google.
• Every Norwegian now indirectly owns $27 worth of Bitcoin as sovereign wealth fund ups crypto stake.

Trading Rule Of The Week

That was it for this week!

Stay safe,
KV 👋

Week #34 | August 18, 2024

Like Illyrian News? Share it with your friends, family, and colleagues who need to stay on top of the market and earn awesome rewards!

Your referral count: 0, only 1 referral away from winning 50% Off First Month Coupon From KV’s Live Trading Room.

Or copy & paste your referral link to others:
https://news.illyrianoptions.com/subscribe?ref=PLACEHOLDER

Like getting this newsletter, but feel like you could learn more from KV & the team? Find out some of the frameworks and strategies that KV’s private mentorship clients are using to hit their trading goals. Book a free discovery call here.

Want to sponsor this newsletter? Reply to this email with the word PARTNER and we’ll get back to you for further details.