11/16 Trading Plan - Wednesday Recap and Day Ahead

🔄 Recap

This week's market activity showcased the transition between trend and consolidation phases. Friday exhibited a strong uptrend, while Monday shifted to a consolidation mode. Notably, the breakout from the downtrend channel and CPI data fueled a significant rally. However, the consolidation session resumed post-rally, raising questions about a potential pullback.

📈 The Markets Overnight

🌏 Asia: Down
🌍 Europe: Mixed
🌎 US Index Futures: Up very slightly
🛢 Crude Oil: Down
💵 Dollar: Down a bit
🧐 Yields: Down
🔮 Crypto: Down

🌏 Major Global Catalysts

The Biden-Xi meeting concluded with a mix of agreements and tensions, impacting global market sentiments. Notably, the S&P 500 Index Futures (ES) showcased remarkable resilience this November, defying the typical seasonal trends.

Snapshot

Daily

4-Hour

🔍 Key Structures

• 4625: Upper green line, connecting January 2022 and August 2022 highs.

• 4556-59: Channel resistance and notable September area.

• 4543: A recurrent resistance level in June and July 2023.

• 4518: Trend line resistance from early to mid-September.

• 4442-45: Post-CPI rally's critical support level.

• 4418-25: Breakout point of the downtrend channel from August 2023.

📉 Support Levels

4507-10, 4496, 4484-86, 4476, 4462, 4452, 4442-45, 4430, 4426, 4418, 4413, 4403, 4390, 4385, 4375, 4366, 4353, 4348, 4341, 4333-35.

📈 Resistance Levels

4518, 4525, 4535, 4543, 4549, 4558-60, 4566, 4577, 4580, 4587-90, 4596, 4610, 4625, 4632, 4638-42, 4648, 4658, 4667, 4674, 4687, 4699, 4705, 4722, 4734, 4744.

📝 Trading Plan

Thursday's focus is on pivotal support at 4507-10. A break below could initiate a rare red day, while holding this level might extend the bullish trend. Resistance levels to watch include 4543 and 4558-60. Trade management will be strictly algorithmic, focusing on level-to-level execution without emotional bias.

🔚 Wrap Up

The market is currently in a post-trend consolidation phase, requiring traders to be adaptable. Key points for Thursday include maintaining support at 4507-10 and watching for potential resistance challenges. The long-term bullish outlook remains as long as the breakout level at 4418-24 holds.

Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decision.