Trading Plan for Tuesday, April 23rd, 2024
Trading Plan for Tuesday, April 23rd, 2024
Market Sentiment: Uncertain, with bulls and bears battling at key resistance after yesterday's recovery day.
Key Supports
Immediate Supports: 5040 (major), 5032, 5020 (major)
Major Supports: 4996 (major), 4959 (major), 4938 (major), 4903 (major)
Key Resistances
Near-term Resistance: 5057 (major), 5081 (major), 5102 (major), 5115 (major)
Major Resistances: 5129 (major), 5141 (major), 5167 (major), 5186-90 (major)
Trading Strategy
The 5040 Battleground Continues to be critical. Observe for breakouts or breakdowns with close attention.
Long Opportunities: Due to the choppy nature of the 5040 zone, direct bids are less reliable. Consider bids with a failed breakdown at 5032 or on major supports (4959, 4938). Prioritize the knife-catch protocol for deeper longs.
Short Opportunities: Look for backtests of 5081 and particularly 5102 for shorting. A breakdown below 5020 could open up downside targets.
Profit-Taking: On shorts, consider taking profits entirely at major levels, especially given ES's tendency to short squeeze.
Bull Case
Holding Support: Defending the 5040 zone is encouraging for bulls. Re-tests and quick recoveries signal buying strength.
Reclaiming Resistances: Bulls need to push above the 5081/5102 zone for a sustained recovery attempt.
Adding on Strength: Breaks and acceptance above 5057 could offer opportunities for adding to long positions. Observe closely to ensure it's not a backtest for a downside rejection.
Bear Case
Breakdown Signals: A convincing break below 5020 triggers the downside move, likely targeting 4975 or lower. As always, be wary of traps – look for a bounce/failed breakdown first, then consider shorting with level-to-level profit-taking.
News: Top Stories for April 23rd, 2024
Economic Environment
US GDP growth and the impact of interest rates on corporate America.
IMF projections for global economic growth and inflation expectations.
Bond market signals regarding Federal Reserve policy.
Market Analysis
Upcoming economic data releases: GDP estimate and key inflation measure.
Reminder: The market is reacting to a mix of earnings reports, economic data, and the critical battle at the 5040 resistance. Prioritize risk management and adapt your trading strategy accordingly.
Market Sentiment: Uncertain, with bulls and bears battling at key resistance after yesterday's recovery day.
Key Supports
Immediate Supports: 5040 (major), 5032, 5020 (major)
Major Supports: 4996 (major), 4959 (major), 4938 (major), 4903 (major)
Key Resistances
Near-term Resistance: 5057 (major), 5081 (major), 5102 (major), 5115 (major)
Major Resistances: 5129 (major), 5141 (major), 5167 (major), 5186-90 (major)
Trading Strategy
The 5040 Battleground Continues to be critical. Observe for breakouts or breakdowns with close attention.
Long Opportunities: Due to the choppy nature of the 5040 zone, direct bids are less reliable. Consider bids with a failed breakdown at 5032 or on major supports (4959, 4938). Prioritize the knife-catch protocol for deeper longs.
Short Opportunities: Look for backtests of 5081 and particularly 5102 for shorting. A breakdown below 5020 could open up downside targets.
Profit-Taking: On shorts, consider taking profits entirely at major levels, especially given ES's tendency to short squeeze.
Bull Case
Holding Support: Defending the 5040 zone is encouraging for bulls. Re-tests and quick recoveries signal buying strength.
Reclaiming Resistances: Bulls need to push above the 5081/5102 zone for a sustained recovery attempt.
Adding on Strength: Breaks and acceptance above 5057 could offer opportunities for adding to long positions. Observe closely to ensure it's not a backtest for a downside rejection.
Bear Case
Breakdown Signals: A convincing break below 5020 triggers the downside move, likely targeting 4975 or lower. As always, be wary of traps – look for a bounce/failed breakdown first, then consider shorting with level-to-level profit-taking.
News: Top Stories for April 23rd, 2024
Economic Environment
US GDP growth and the impact of interest rates on corporate America.
IMF projections for global economic growth and inflation expectations.
Bond market signals regarding Federal Reserve policy.
Market Analysis
Upcoming economic data releases: GDP estimate and key inflation measure.
Reminder: The market is reacting to a mix of earnings reports, economic data, and the critical battle at the 5040 resistance. Prioritize risk management and adapt your trading strategy accordingly.
Related publications
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