Trading Plan for Monday, April 8th, 2024

Trading Plan for Monday, April 8th, 2024

Market Sentiment: Bullish with potential for volatility as CPI data approaches.

Important Note: CPI data will be released later this week. Expect outsized moves and potential traps. Prioritize risk management and adaptability.

Key Supports

• Immediate Supports: 5246 (major), 5230-34 (major), 5221, 5212, 5207, 5203 (major), and others.

• Major Supports: 5196, 5191 (major), 5181, 5179 (major), 5172, 5162 (major), 5155, 5144-46 (major), and many more.

Key Resistances

• Near-term Resistance: 5255 (major), 5263, 5270 (major), 5279, 5287, 5292 (major), and others.

• Major Resistances: 5302, 5308 (major), 5311, 5316, 5321, 5329-32 (major), and more.

Trading Strategy

• Defending Support: The 5230-34 zone is crucial for bulls. Holding this level signals potential for an upwards move toward 5287-92, with possible profit-taking dips along the way.

• Long Opportunities: Focus on the 5230-34 zone (if today's high remains unbroken). In case of a breakdown, use extreme caution and target major supports like 5203 and 5191. Look for failed breakdowns and reclaims as potential long entry signals.

• Shorting with Caution: Shorting into strength within bull markets is inherently risky. If considering shorts, the best area is the 5287-92 zone (red downtrend channel), with another potential reaction at 5270.

Bull Case

• Holding Strong: As long as 5230-34 support holds (ideally with a minor dip promptly bought below 5203), the path is open to 5287-92. Expect another dip there before potentially reaching new all-time highs.

• Ultra Bullish Scenario: If bulls hold above 5246 and buy any small dips, this signals strength and could lead to potential adds.

Bear Case

• Breakdown Signals: If 5230-34 fails, the bear case activates. Since most breakdowns trap, look for a bounce/failed breakdown first, then consider short entries with level-to-level profit targets.

News: Top Stories for April 8th, 2024

Stock Market Outlook

• S&P 500 hits record highs, strong Q1 performance increases bullish sentiment.

• Reduced recession fears and potential Fed pivot drive positive outlook.

• April historically favorable for the S&P 500.

• Analysts forecast strong earnings growth with significant upside potential.

Corporate Earnings

• Intel's Q1 2024 financial results release set for April 25th.

• Perion Network updates guidance, increases share buyback.

Economic Indicators

• Q4 GDP growth remains solid despite high interest rates.

• Bond market signals potential Fed rate cuts as early as June.

• Trade deficit widens, while manufacturing data shows strength.

Technology Sector

• Modest growth expected in 2024, with IT investment plans.

• AI, cloud computing, and cybersecurity to drive tech spending.

Other Corporate and Market News

• Nvidia's strong performance continues in AI chip market.

• Tesla faces challenges in China, automotive growth slows.

• Boeing impacted by quality control concerns.

Upcoming Events

• Tech conferences including Google Cloud Next and ODSC East.

• Women in Tech Global Conference highlights industry leaders.

Reminder: The CPI release this week will likely cause significant volatility. Adapt your trading accordingly, with an emphasis on reacting to price action and prioritizing risk management.