11/21 Trading Plan - Monday Recap and Day Ahead

🔄 Recap

Todays price action highlighted the power of technical analysis, with ES breaking out of a 4-month downtrend post-CPI, rallying 120 points. The market formed a bullish triangle pattern last week, which led to a breakout and an upward trajectory today, aligning perfectly with our analysis from the last newsletter.

📈 The Markets Overnight

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

🌏 Major Global Catalysts

FOMC meeting minutes and NVDA earnings later today.

Snapshot

Daily

4-Hour

🔍 Key Structures

• 4622: Core trendline connecting the January 2022 COVID bull market high with the August 2022 high.

• 4577-80: A major resistance level observed in late August.

• 4543-35: A critical resistance level, now the most important zone to hold.

• 4521-18: A vital support level that has been crucial in the recent rally.

• 4488: An important zone for back-testing as the first major support down.

• 4445-47: A key back-test support level post-CPI day breakout.

📉 Support Levels

• Major Supports: 4556-58, 4542, 4536-38, 4521, 4488, 4446-48, 4400-4405.

📈 Resistance Levels

• Major Resistances: 4577-80, 4607-09, 4623, 4658.

📝 Trading Plan

• Short-Term Focus: Watch 4536-38 for potential bearish indications.

• Long-Term Strategy: Bulls remain in control; maintain focus on key supports for signs of sustained upward movement.

🔚 Wrap Up

As we approach Thanksgiving, typically strong for the market, we need to stay vigilant for potential shifts. The market's resilience with only one red day this month suggests strong bullish control, but caution is advised due to the holiday trading week and potential overhead supply.

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