1/11 Trading Plan - Wednesday Recap and Thursday Trading Plan

📊 Market Sentiment: Neutral to Bullish

Market sentiment is currently shaped by various factors including the latest US inflation data, Federal Reserve's potential rate cuts, the kickoff of the earnings season, Asia-Pacific market movements, and global economic growth projections.

🌍 Global Financial and Economic News:

• US Inflation Data: The CPI showed a higher-than-expected annual rate, indicating persistent inflation, which could influence the Federal Reserve's interest rate decisions.

• Federal Reserve Rate Cuts: Market anticipation for potential rate cuts is high, with investors closely monitoring economic indicators.

• Earnings Season Kickoff: Reports from JPMorgan, Delta Air Lines, and Citigroup are expected, which could significantly impact market sentiment.

• Asia-Pacific Market Movements: Notable gains in Japan's Nikkei 225 and mixed movements in other indices, with the Bank of Korea holding interest rates steady.

• Global Economic Growth Projections: Slowing global economic growth due to high interest rates and geopolitical risks is expected.

📉 Support Levels to Watch: Key support levels include 4808-10, 4787, 4778-81. These levels will be critical in determining potential buying points in the market.

📈 Resistance Levels to Watch: Major resistance levels are identified at 4820, 4834, 4860-66. These levels represent potential barriers where selling pressure might increase.

📅 Trading Plan for Thursday:

• Bull Case: Following the CPI release, the key for bulls is maintaining support levels, particularly 4787 and 4808-10, to sustain the upward momentum towards the 4835 level.

• Bear Case: The bear case involves the failure of support levels, especially in the context of CPI data volatility, with a focus on potential breakdown trades.

• Strategy: Caution is advised due to the complexity of trading on CPI release days, with a focus on failed breakdowns and consolidation patterns. The plan emphasizes protecting profits and adapting to real-time market conditions, particularly around key support levels.

🛑 Disclaimer: This analysis is for educational purposes only and is not financial advice. Market conditions are dynamic and subject to rapid changes. Consultation with a professional financial advisor is recommended before making trading decisions.