Trading Plan for Wednesday, April 24th, 2024

Trading Plan for Wednesday, April 24th, 2024

Market Sentiment: Uncertain, with bulls maintaining control after yesterday's rally but price action becoming more complex after a trend day.

Key Supports

• Immediate Supports: 5095-5100 (major), 5082, 5076 (major), 5067

• Major Supports: 5056 (major), 5047-45 (major), 5027 (major), 4996-5000, 4966 (major), 4945-49 (major)

Key Resistances

• Near-term Resistance: 5120 (major), 5136 (major), 5171 (major), 5190 (major)

• Major Resistances: 5220 (major), 5246 (major)

Trading Strategy

• Post-Trend Caution: After a significant move yesterday, be aware of complex price action and increased potential for traps. Prioritize caution over conviction.

• Long Opportunities: Due to the choppy nature of post-trend days, direct bids are less reliable. Consider bids with a failed breakdown at 5090 (after it's reclaimed) or on major supports (5056, 5046-45). Prioritize the knife-catch protocol for deeper longs.

• Short Opportunities: Look for backtests of 5136 and particularly 5171 for shorting. A breakdown below 5076 could open up downside targets, with level-to-level profit-taking.

• Risk Management: Scale back position sizing and be prepared to potentially take some losses while price discovery takes place.

Bull Case

• Holding Support: Defending the 5045 zone is encouraging for bulls.

• Reclaiming Resistances: Bulls need to push above the 5120/5136 zone for a potential run to the next major target, 5171.

• Adding on Strength: Breaks and acceptance above 5095, within a bull flag pattern, 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 5045 triggers the downside move, while a short-term failure of 5076 could lead to a dip. 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 24th, 2024

Economic Environment

• IMF Global Financial Stability Report highlights optimism and lingering risks.

• US Dollar's strength despite expectations of decline.

• Economic indicators: Focus on upcoming employment report, CPI report, and Bitcoin halving.

Stock Market Updates

• S&P 500 performance: new highs followed by a downturn due to inflation concerns.

Additional Market News

• Boeing's quarterly performance and supply chain stabilization.

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. Let me know if you'd like any changes!