11/28 Trading Plan - Tuesday Recap and Day Ahead

📊 Market Sentiment

Neutral to Short-Term Bearish: Current indicators suggest a cautious approach, with a lean towards a short-term bearish outlook amid mixed global signals.

🔄 Recap

In today’s issue, we delve into the performance of S&P 500 Futures, analyzing the recent consolidation phase after a notable rally. We examine the tight trading range that has defined the market over the past week, emphasizing caution in these choppy conditions.

📈 The Markets Overnight

🌏 Asia: Mostly down
🌍 Europe: Up
🌎 US Index Futures: Up
🛢 Crude Oil: Up
💵 Dollar: Up slightly
🧐 Yields: Down
🔮 Crypto: Up

🌏 Major Global Catalysts

• Hawkish Fed Governor Waller turns dovish saying rates are in the right place.

• European CPI inflation reports coming in lower than expected.

📷 Snapshot

Daily

4-Hour

🔍 Key Structures

We've identified crucial structures ranging from 4620-25 as a broad upside target, down to 4418, a pivotal bull market trendline. The ES is currently consolidating under 4580, indicating a potential move on the horizon.

📉 Support Levels

• 4536: A prominent horizontal zone, critical for maintaining the current bullish structure.

• 4508: A support level that played a significant role in sustaining the rally after the November CPI release.

• 4485: A pivotal support-turned-resistance that could be retested.

• 4445-37: Key support zones that could act as a staging ground for future rallies.

📈 Resistance Levels

• 4620-25: A major trendline target, marking the intersection of historical highs.

• 4580: A strong resistance level that has been tested and held thus far.

• 4565: An immediate resistance that could dictate short-term price action.

📝 Trading Plan

For Wednesday’s session, we focus on key support and resistance levels. The plan includes monitoring for base building above 4555 for a possible move to 4580+ while also considering short positions on breakdowns below key support levels.

💡 Wrap Up

The market remains in a tight balance, with a persistent bullish undertone. It’s crucial to navigate this choppy phase with a disciplined trading plan, recognizing the potential for both upward continuation and downward reversal. Stay tuned for updates on major catalysts that may impact the market dynamics.

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