Trading Plan for Wednesday, March 27th, 2024

Trading Plan for Wednesday, March 27th, 2024

Market Sentiment: Cautious

Weekly Volatility Risk: High

Supports to Watch:

• Immediate Supports: 5266 (major), 5258, 5247 (major), 5242, 5233-36 (major), 5221, 5213, 5206-10 (major), 5198, 5188-91 (major), 5181, 5172, 5167-69 (major), 5162, 5153-55 (major), 5146, 5137, 5126 (major), 5119 (major), 5109

Resistances to Monitor:

• Key Resistances: 5274 (major), 5281, 5286-88 (major), 5293, 5299 (major), 5305 (major), 5311, 5315, 5318-20 (major), 5328, 5336-38 (major), 5345 (major), 5354, 5365 (major), 5372, 5380 (major), 5392, 5399 (major), 5408 (major), 5416 (major), 5425, 5432, 5440-44 (major), 5448, 5457 (major)

Trading Strategy:

• Support & Resistance: Watch for potential bounces on support levels 5266, 5247 (triangle backtest), or a deeper pullback to 5242. For shorts, look higher towards 5286-88 or the 5299 zone after a strong move up.

• Long Opportunities: Consider longs only on strong reactions to support levels, ideally with confirmed failed breakdowns for added safety.

• Short Opportunities: If considering shorts, strong moves up followed by signs of weakness near resistance zones could be potential areas.

• Focus on Reactions: Be adaptable – volatility can create opportunities and traps with equal measure.

Bull Case

• Support Holds: As long as supports like 5266, then particularly the triangle backtest at 5247 hold, bulls maintain short-term control.

• Breakout potential: A decisive breakout above the flag pattern's resistance around the 5300 zone could lead to a surge towards 5318-20 and potentially new highs.

Bear Case

• Breakdown Signals: Breakdown below 5266 followed by continued selling could trigger a move downwards. Look for potential shorting opportunities on failed breakdowns or bounces with extremely tight stops due to FOMC volatility. .

News: Top Stories for March 27th, 2024

• Regulatory Response to Bank Runs: Federal Reserve and regulatory officials prepare to announce new rules designed to prevent future bank crises, addressing lessons learned from last year's turmoil.

• Economic Outlook: Recent CPI data, comments from industry leaders and analysts provide insights into inflation trends, monetary policy expectations, and the global economic outlook.

• Market Performance and Expectations: A cautious outlook for 2024 due to various factors including geopolitical risks and monetary headwinds.

• Corporate News: Updates on legal settlements, management changes, and stock market debuts affecting companies like Visa, Mastercard, Boeing, and Truth Social.

• Legal Issues in Crypto: U.S. prosecutors file criminal charges against KuCoin exchange and its founders.

• Currency and Interest Rates: Tracking movements in the Japanese Yen and potential actions by the Swedish Riksbank.