1/5 Trading Plan - Last Week Recap and Friday Trading Plan

📊 Market Sentiment: Intense Anticipation

As we navigate through a critical phase, the market remains intensely anticipative, closely watching the support and resistance levels after recent pullbacks and rallies.

📝 Today's Recap

The market's latest move was a strategic "knife catch" long attempt at key 4727 support, marking an intensified focus on the immediate supports and resistances. The market remains in "sell bounces" mode, indicating a wary and responsive approach to any upward movements.

🌍 Global Financial and Economic News

1. U.S. Labor Data Release: Markets await this crucial data, which could signal the Federal Reserve's next move on interest rates. The outcome will be pivotal for understanding the trajectory towards a "soft landing."

2. Optimism About the 2024 Economy: Despite earlier recession fears, economic resilience in the U.S. brings a hopeful outlook, albeit with an understanding of potential unexpected risks.

3. Inflation Outlook: Success in reducing inflation is acknowledged, yet there's caution against premature policy shifts that might cause inflation to rebound.

4. Stock Market Dynamics: The stock market's current momentum faces scrutiny over concerns of overbought conditions and potential for a correction amidst various global factors.

5. Global Economic Slowdown Predictions: Forecasts suggest a deceleration in global growth due to a combination of high interest rates, geopolitical risks, and other economic pressures.

📉 Support Levels to Watch

Critical supports are set at 4727, 4709, and 4694, among others, down to 4576. The market's reaction to these will be instrumental in determining the next moves. Particularly, the 4727 level is under the spotlight for potential long attempts or further sell-offs.

📈 Resistance Levels to Consider

Resistance levels at 4736, 4747, and 4776 are among the key zones to watch. These levels, if reclaimed, might trigger a squeeze and potentially initiate a rally, while their failure might consolidate bearish control.

📝 Trading Plan for Friday

Bull Case: Bulls need to defend 4727 vehemently and reclaim 4747 to signal a potential rally. Success here could lead to tests of higher resistances at 4757 and beyond.

Bear Case: A break below 4727 could confirm bear dominance, triggering further downside towards 4709. Bears are cautioned against the high risk and potential traps in breakdown trades.

🛑 Disclosure

This information is not financial advice and is for educational purposes only. Strategy and market sentiment are fluid and subject to rapid change. Consult a professional financial advisor before making any trading decisions. Stay cautious and informed, especially during significant economic announcements.