2/6 Tuesday Trading Plan

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

Author

Jonathan
February 06, 2024

📊 Market Sentiment: Neutral to Bearish

  • Economic Positivity vs. Recession Risks: Ongoing discussions about potential economic slowdown amidst optimistic indicators.

  • U.S. National Debt: Concerns over $34 trillion debt and its sustainability.

  • Gold Prices: Driven to all-time highs by geopolitical tensions, banking uncertainties, and Fed's interest rate policies.

  • Layoffs and Job Market: Over 720,000 layoffs signal caution among employers.

  • Housing Market: Expected slight increase in median home prices.

📝 Today's Recap:

  • Housing Market and Fed Policies: Fed's steady interest rates amid rising housing costs.

  • China's Stock Market: Rally following government's increased stock purchases.

  • Corporate Earnings: Meta's earnings growth and dividend introduction.

  • Banking Sector: AI's transformative potential in banking for 2024.

🌍 Global Financial and Economic News:

  • Investment Trends for 2024: Forbes highlights AI's impact on the financial sector.

  • Financial Market Outlooks: Diverse predictions for 2024, from stock valuations to GDP expectations.

📉 Support Levels to Watch:

  • 4965, 4954, 4947 (Major), 4942, 4930, 4915, 4908

  • Notable for potential bids: 4930 and 4908-4915 cluster.

📈 Resistance Levels to Watch:

  • 4970, 4986-4990 (Major), 5018, 5028-5033

  • Key for potential shorts: 4986-4990 and 5028-5033 zones.

📅 Trading Plan for Tuesday:

  • Approach: Conservative post-rally strategy, focusing on high-probability setups within the new base range.

  • Bull Case: Maintain supports at 4965 and 4947 for base building; target upward moves to 4990 and beyond on breakouts.

  • Bear Case: Watch for failure at 4947, signaling deeper retracement; consider shorts on breakdowns with tight risk management.

  • Tactics: Emphasize level-to-level trading, particularly around 4965 and 4947 supports, and 4986-4990 resistance for potential reentries or reversals.

🛑 Disclaimer: This analysis is for educational purposes only, not financial advice. Market conditions are dynamic; consult a professional before making trading decisions. Risk management is essential.