Trading Plan for Thursday, April 25th, 2024

SPDR S&P 500 FUTURES ESM2024 & SPY ETF - Market Update

Jonathan
April 25, 2024

Trading Plan for Thursday, April 25th, 2024

Market Sentiment: Uncertain, with bulls maintaining short-term control.

Key Supports

Immediate Supports: 5088-92 (major), 5082, 5077 (major), 5067
Major Supports: 5054-57 (major), 5033-36 (major), 5005-10 (major), 4966 (major)

Key Resistances

Near-term Resistance: 5104 (major), 5115-20 (major), 5133-36 (major), 5171-75 (major)
Major Resistances: 5191 (major), 5225, 5240-45 (major)

Trading Strategy

Trading the Chop Zone: The 5088-5115 range is currently a choppy, congested zone. Exercise caution with overtrading and consider sniping within the zone over chasing direction.
Long Opportunities: Look for failed breakdowns at 5088-92 or 5077. After earnings, focus on bids cautiously within the range, prioritizing the knife-catch protocol for deeper longs at major levels.
Short Opportunities: Look for backtests of 5115 or the major 5171-75 zone if reached. Given earnings, a breakout of the current flag pattern is possible and could be considered, but use caution.
Profit-Taking: With Meta earnings, use level-to-level profit-taking on any position.

Bull Case

Holding Support: Defending the current bull flag structure (5088-5115) is critical. Look for a base building within this range or a breakout.
Reclaiming Resistances: Bulls need to push above the 5133-36/5155 zone for a potential run to the next major target, 5171-75.

Bear Case

Breakdown Signals: A convincing break below 5077 triggers the downside move. As always, be wary of traps – look for a bounce/failed breakdown first, then consider shorting with level-to-level profit-taking.

News: Top Stories for April 25th, 2024

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