Trading Plan for Tuesday, April 23, 2024

Trading Plan for Tuesday, April 23rd, 2024

Market Sentiment: Uncertain, with bulls and bears battling at key resistance after yesterday's recovery day.

Key Supports

• Immediate Supports: 5040 (major), 5032, 5020 (major)

• Major Supports: 4996 (major), 4959 (major), 4938 (major), 4903 (major)

Key Resistances

• Near-term Resistance: 5057 (major), 5081 (major), 5102 (major), 5115 (major)

• Major Resistances: 5129 (major), 5141 (major), 5167 (major), 5186-90 (major)

Trading Strategy

• The 5040 Battleground Continues to be critical. Observe for breakouts or breakdowns with close attention.

• Long Opportunities: Due to the choppy nature of the 5040 zone, direct bids are less reliable. Consider bids with a failed breakdown at 5032 or on major supports (4959, 4938). Prioritize the knife-catch protocol for deeper longs.

• Short Opportunities: Look for backtests of 5081 and particularly 5102 for shorting. A breakdown below 5020 could open up downside targets.

• Profit-Taking: On shorts, consider taking profits entirely at major levels, especially given ES's tendency to short squeeze.

Bull Case

• Holding Support: Defending the 5040 zone is encouraging for bulls. Re-tests and quick recoveries signal buying strength.

• Reclaiming Resistances: Bulls need to push above the 5081/5102 zone for a sustained recovery attempt.

• Adding on Strength: Breaks and acceptance above 5057 could offer opportunities for adding to long positions. Observe closely to ensure it's not a backtest for a downside rejection.

Bear Case

• Breakdown Signals: A convincing break below 5020 triggers the downside move, likely targeting 4975 or lower. 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 23rd, 2024

Economic Environment

• US GDP growth and the impact of interest rates on corporate America.

• IMF projections for global economic growth and inflation expectations.

• Bond market signals regarding Federal Reserve policy.

Stock Market Updates

• S&P 500 performance: new highs and strong first quarter momentum.

• Contrasting performances of Nvidia and Tesla.

• Earnings season: Mixed reactions to early reports and focus on big tech earnings.

Market Analysis

• Sector analysis: Focus on communications services and energy sectors.

• Treasury yields, commodity prices, and their impact on the market.

• Performance of the "Magnificent 7" tech companies.

• Upcoming economic data releases: GDP estimate and key inflation measure.

Additional Market News

• Market volatility during the election year and historical investment strategies.

Reminder: The market is reacting to a mix of earnings reports, economic data, and the critical battle at the 5040 resistance. Prioritize risk management and adapt your trading strategy accordingly.