Optimistic Outlook

"In calm markets, patience becomes the sharpest tool. — Stay focused and ready for the moves ahead."

Hello, my friends!

We started the day with a big gap up in both ETFs - Nasdaq and S&P, setting the stage for what could be an exciting trading session.

While today’s economic news was light — featuring updates on used car prices, consumer inflation, and a bill auction later in the day — the real action (volatility trigger) lied in the NY open, 9:30 AM EST

I had my levels, checklist, and risk tolerance locked and loaded for when that first impulse would kick in!

NY Open (1.19%) Impulse 🏦

The indices kicked off strong, with a clear ambition to push into higher areas of supply.

We were also seeing a revisit of Friday’s pre-market lows - Strong confluence of supply

As always, patience is key — I was waiting for Nasdaq to hit those major 0DTE supply levels first, then make a vital decision.

And there it was! After about 45 minutes of anticipation, the market finally tested the key 455 level on QQQ.

As we’ve seen time and time again, patience was crucial here, waiting for the right moment to unfold. And when it did, the rejection was quick and decisive — just as we often see with sharp sell-offs.

All eyes were on the next target: demand zone 450 QQQ. The game plan was simple—short high, close low.

As price entered that strong demand zone, the early Monday impulse was completed, wrapping up a level to level blueprint

• QQQ 450 (0DTE Demand)

• QQQ 455 (0DTE Supply)

These market levels are recalculated and updated daily, taking into account factors like gamma expiration, trading volume, and market volatility. For the most up-to-date levels and analysis, all information is available on MenthorQ.

VIX Support 🤝

To add to the mix, the VIX was showing support right at that critical 20 level, perfectly in line with its 0DTE level from options flow

• It can be a powerful tool that serves as a strong confluence indicator when analyzing major indices.

• It’s particularly effective during the early hours of the trading session, where volatility is at its peak. In these critical moments, the VIX gives us added clarity on the market's intentions.

Here’s a perfect example of how the levels played out today, using the VIX to confirm key movements and guide our decisions with greater confidence.

Investors Look for Bargains Ahead of Key Economic Data ⚡

Wall Street’s three major indexes closed higher on Monday as investors sought opportunities after last week’s sell-off.

Investors returned to the markets with a more optimistic outlook, looking for bargains and awaiting key inflation data and the Federal Reserve's policy decision next week.

Kristina Hooper, chief global market strategist at Invesco, suggested that last week's market reaction was an overreaction to economic fears, with many now expecting a pause in rate hikes.

Key events this week:

• Consumer Price Index (CPI) report on Wednesday, which will be a critical factor in determining the Fed’s next move.

• Analysts are forecasting a moderation in inflation, that weighs in the possibility of a 25 or 50 basis point rate cut.

Google (3.56%) Impulse 📉🔻

Google faced an early round of bearish news today, which led to consistent downward price movement.

It stood out as one of Nasdaq's weakest tech performers, particularly after the broader Nasdaq index saw a sharp sell-off following the NY open.

As market pressure mounted, Google continued to struggle, underperforming compared to its tech peers. This sell-off, coupled with negative sentiment around the company, made Google one of the key stocks to watch as the trading day unfolded.

Google faces its second antitrust lawsuit 📰

• The U.S. Justice Department, joined by 17 states, alleges Google used illegal tactics to dominate ad tech and prevent competition.

• The case follows a separate antitrust ruling against Google's search practices.

• Google argues the digital ad market is competitive, with players like Microsoft and TikTok gaining ground.

• If Google loses, its ad business could be significantly affected, especially as it integrates AI to compete with rivals.

For more details, check the full report here.

Closing Mindset 🧠

Today was a prime example of how patience pays off, especially in uncertain pre-market conditions.

In both business and your personal life, consistency with time mgmt. is crucial for building discipline - without these key elements, you risk losing focus and direction.

Discipline is what keeps you moving forward, so make these habits part of your daily routine to stay on track and achieve long-term success.

Stay focused, stay composed, and keep building those habits!

Until next time,
Steve B.
Founder, The Daily Impulse

Curious about how I manage risk and identify key levels in the market?

I'd love for you to join the community!

We have exclusive monthly and yearly offers below.

New here? Join the newsletter below!

Important Disclaimer:

This newsletter is for educational purposes only and does not offer financial or investment advice. It should not be taken as a recommendation to trade assets or make any financial decisions. Please be cautious and ensure you conduct thorough research or consult with a financial professional before making any investment choices.