Trading Plan for Monday, March 11th, 2024
Market Sentiment: Neutral to Bullish
Weekly Volatility Risk: High
Supports to Watch:
Immediate Supports: 5196, 5187 (major), 5181, 5176, 5168 (major), 5163 (major), 5155, 5147, 5140, 5136, 5131, 5126 (major), 5116, 5108, 5103, 5095, 5090 (major), 5084 (major), 5076, 5072 (major).
Resistances to Monitor:
Key Resistances: 5205 (major), 5211, 5220 (major), 5232, 5241 (major), 5254, 5262 (major), 5270-73 (major), 5280, 5290 (major), 5296, 5309 (major), 5326, 5330 (major), 5348, 5359, 5366, 5377 (major)
Trading Strategy:
Cautious Trading: The early week dip suggests a more cautious approach for Monday's trading. Err on the side of capital preservation by limiting aggressive trades.
Long Opportunities: Look for potential long entries at major support levels, particularly 5187, 5168-63, and 5126.
Counter-trend Cautions: (For experienced traders) Be aware of potential short opportunities at resistances like 5262 and 5241, but remember the overall bull trend remains in force.
Bull Case:
Trend Continuation: The overall bull market is still dominant. Defending 5187 (and ideally 5163) supports would signal that another leg up is likely, targeting 5262+.
Adding on Strength: Monitor reclaims of 5211 for potential long entries.
Bear Case:
Breakdown Signals: A decisive break below 5187, particularly a failed breakdown, could trigger a move down the levels. Watch for shorting opportunities on confirmed breakdowns.
News: Top Stories for March 11th, 2024
Stock Market Strength: The S&P 500 continues its record-breaking run, with a strong 7.11% return year-to-date.
AI Drives Tech Boom: AI stocks, led by Nvidia's impressive earnings, are boosting the technology sector.
Fed Outlook: The Federal Reserve's plans for interest rates are a key focus as investors anticipate potential cuts in late 2024.
US Economic Picture: The latest GDP growth projections suggest a potential slowdown, but strong earnings and market momentum are positive indicators.
Global Outlook: The IMF's upward revision of global growth forecasts points to a return to normal growth levels.
Regulatory Updates: Fed officials are planning new rules to prevent banking crises, and the finalization of Basel III could have significant implications for the sector.
Additional Considerations:
Historical Trends: Historically, a strong January and February for the S&P 500 tend to foreshadow continued gains over the following 12 months.
Inflation Expectations: Monitor potential for a rebounding inflation rate later in the year.
Market Sentiment: Neutral to Bullish
Weekly Volatility Risk: High
Supports to Watch:
Immediate Supports: 5196, 5187 (major), 5181, 5176, 5168 (major), 5163 (major), 5155, 5147, 5140, 5136, 5131, 5126 (major), 5116, 5108, 5103, 5095, 5090 (major), 5084 (major), 5076, 5072 (major).
Resistances to Monitor:
Key Resistances: 5205 (major), 5211, 5220 (major), 5232, 5241 (major), 5254, 5262 (major), 5270-73 (major), 5280, 5290 (major), 5296, 5309 (major), 5326, 5330 (major), 5348, 5359, 5366, 5377 (major)
Trading Strategy:
Cautious Trading: The early week dip suggests a more cautious approach for Monday's trading. Err on the side of capital preservation by limiting aggressive trades.
Long Opportunities: Look for potential long entries at major support levels, particularly 5187, 5168-63, and 5126.
Counter-trend Cautions: (For experienced traders) Be aware of potential short opportunities at resistances like 5262 and 5241, but remember the overall bull trend remains in force.
Bull Case:
Trend Continuation: The overall bull market is still dominant. Defending 5187 (and ideally 5163) supports would signal that another leg up is likely, targeting 5262+.
Adding on Strength: Monitor reclaims of 5211 for potential long entries.
Bear Case:
Breakdown Signals: A decisive break below 5187, particularly a failed breakdown, could trigger a move down the levels. Watch for shorting opportunities on confirmed breakdowns.
News: Top Stories for March 11th, 2024
Stock Market Strength: The S&P 500 continues its record-breaking run, with a strong 7.11% return year-to-date.
AI Drives Tech Boom: AI stocks, led by Nvidia's impressive earnings, are boosting the technology sector.
Fed Outlook: The Federal Reserve's plans for interest rates are a key focus as investors anticipate potential cuts in late 2024.
US Economic Picture: The latest GDP growth projections suggest a potential slowdown, but strong earnings and market momentum are positive indicators.
Global Outlook: The IMF's upward revision of global growth forecasts points to a return to normal growth levels.
Regulatory Updates: Fed officials are planning new rules to prevent banking crises, and the finalization of Basel III could have significant implications for the sector.
Additional Considerations:
Historical Trends: Historically, a strong January and February for the S&P 500 tend to foreshadow continued gains over the following 12 months.
Inflation Expectations: Monitor potential for a rebounding inflation rate later in the year.
