1/18 Trading Plan

SPDR S&P 500 FUTURES ESH2024 & SPY ETF - Market Update

Author

Jonathan
January 18, 2024

📊 Market Sentiment: Bearish

Market sentiment for ES1! ESH2024 Futures is currently being shaped by several key factors including the European Central Bank's interest rate expectations, inflation in the Euro Zone, China's economic outlook, U.S. market trends, and corporate earnings reports.

🌍 Global Financial and Economic News:

  • Interest Rate Expectations: The ECB's potential delay in starting rate cuts affects market expectations, hinting at sustained high interest rates.

  • Inflation in the Euro Zone: The rise in Euro Zone inflation may impact the ECB's monetary policy, affecting market dynamics.

  • China's Economic Outlook: China's slower-than-expected post-COVID recovery and economic policy decisions remain a focal point for investors.

  • U.S. Market Trends: The shift from Big Tech to sectors like healthcare and the anticipation of key inflation readings influence market sentiment.

  • Corporate Earnings Reports: Earnings from major companies like Infosys, JPMorgan Chase, and others are closely watched for insights into various sectors' health.

📉 Support Levels to Watch: Key support levels for $ESH2024 Futures include 4766, 4758-61, and 4746.

📈 Resistance Levels to Watch: Major resistance levels are identified at 4775, 4782-85, and 4802.

📅 Trading Plan for Thursday:

  • Bull Case: The bull case involves maintaining support levels, particularly 4758-61, to facilitate an upward trend towards higher resistance points.

  • Bear Case: The bearish scenario continues with the failure of support at 4758, leading to potential market downturn.

  • Strategy: The plan emphasizes adapting to market conditions, with a focus on the choppy range of 4760-4785. Key is to be flexible and responsive to real-time market dynamics, especially around support and resistance 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.