12/5 Trading Plan - Monday Recap and Day Ahead

📊 Market Sentiment: Neutral to Bearish

The S&P 500 Index Futures have been hovering in a choppy zone between 4550-4580, presenting a challenging environment with limited predictability. Despite the uncertainty, the overall trend remains slightly bullish, contingent on the key support level of 4555 holding firm. It's imperative for traders to acknowledge the inherent risks in trading, as no strategy is foolproof.

🔄 Recap

Navigating the current market conditions requires a flexible and tactical approach, focusing on trading from one significant level to the next. The previous week concluded with a notable surge on Friday, characterized by a failed breakdown and the formation of a bull flag. Contrastingly, today's session was predominantly characterized by short trading opportunities.

📈 The Markets Overnight

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

🌏 Major Global Catalysts

• Moody’s cuts China credit outlook to negative on growing debt risks

• US foreign policy funding in doubt.

📷 Snapshot

Daily

4-Hour

🔍 Key Structures

4755, 4658-66, 4635, 4618, 4573, 4556, 4542-45, 4520-25, 4494-96, 4448, and 4424-26.

📉 Support Levels

4573, 4568, 4564, 4556-58, 4549, 4542-45, 4535, 4531, 4525, 4520, 4511, 4507, 4495-96, 4484, 4472, 4462, 4452, 4447, 4436, and 4425-30

📈 Resistance Levels

4580, 4590, 4597, 4601, 4609, 4618, 4623, 4632, 4636, 4642, 4647, 4658, 4666, 4680, 4692, 4700, 4706, 4720, 4725, 4736, 4744, and 4753

📝 Trading Plan

Bullish Scenario: Bulls should focus on maintaining the 4556-58 and 4542 support levels to sustain upward momentum. Potential additions in bullish conditions could be considered within a bull flag formation, particularly between 4573-68 and below 4580.

Bearish Scenario: For bearish traders, actionable opportunities arise only if support levels fail. Trades below these supports should be approached with caution and skill.

💡 Wrap Up

The trend continues to lean towards bullishness. As long as the 4555 level is sustained, the market has the potential to consolidate within this range and possibly advance towards 4618. However, a breakdown below 4542 could trigger selling pressure into bearish territory.

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