Trading Plan for Wednesday, March 20th, 2024
Trading Plan for Wednesday, March 20th, 2024
Market Sentiment: Extremely cautious ahead of FOMC decision
Weekly Volatility Risk: Extremely High (FOMC)
Supports to Watch:
Immediate Supports: 5236, 5230, 5220-17 (major), 5212, 5209 (major), 5202, 5196, 5192 (major), 5184, 5169-71 (major), 5162, 5155-57 (major), 5147, 5137 (major), 5126 (major), 5117, 5100-03 (major), 5091, 5075-80 (major), 5069, 5056 (major), 5050, 5043 (major), 5038, 5032, 5020-25 (major), 5014, 5010 (major), 5000, 4995 (major)
Resistances to Monitor:
Key Resistances: 5246-49 (major), 5258, 5265, 5276-80 (major), 5295-5300 (major), 5308 (major), 5317, 5323 (major), 5330, 5338, 5352, 5358, 5365-70 (major), 5384, 5395, 5406-11 (major)
Trading Strategy: FOMC Extreme Caution
FOMC Volatility: The FOMC decision is the dominant factor today. Expect unpredictable market swings and heightened volatility. Prioritize capital preservation above all else.
Triangle Pattern: The triangle pattern with resistance at 5246-50 and support around 5184 remains in play. FOMC is likely to trigger a breakout or breakdown.
Long Opportunities: (High Risk) FOMC-related dips present potential long opportunities, but only with extremely cautious sizing. Consider targeting 5220-17 first, and even then, only if it shows a failed breakdown and reclaim. In a severe melt-down scenario, watch for failed breakdown setups around major supports.
Short Opportunities: (High Risk) Counter-trend shorting on FOMC days is extremely risky. If considering shorts, the 5295-5300 zone, after a strong move up, could be one potential area.
Focus on Reactions: Don't predict FOMC outcomes, focus on reacting to price action post-decision.
Bull Case
Triangle Breakout: A decisive breakout above the triangle resistance at 5246-50 could lead to targets at 5258, 5276-80, and then the 5295-300 zone. Be wary of traps on any strong moves post-FOMC.
Bear Case
Breakdown Signals: Breakdown below the triangle support at 5184 could trigger significant selling pressure. Watch for shorting opportunities on failed breakdowns or bounces. Exercise extreme caution and patience in a fast-moving market.
News: Top Stories for March 20th, 2024
FOMC Decision: The Federal Reserve concludes its March meeting, with a decision on interest rates expected at 2 PM ET, followed by a press conference with Chair Jerome Powell. Focus is on the Fed's outlook, updated economic projections, and any guidance on the timing and pace of potential rate cuts and how data will determine those decisions.
Market Volatility: Expect unpredictable market swings around the FOMC decision, with the potential for large gains or losses.
Economic Outlook: Recent economic indicators, the latest CPI figures, and concerns about recession risks will be closely watched alongside the Fed's announcements and commentary.
Intel Investment Boost: Intel receives a major investment, boosting the company and its stock.
EU Regulatory Vote Delayed: The EU delays the vote on a nature restoration law due to concerns and farmer protests.
Remember: The FOMC decision has the potential to cause extreme market volatility, whipsaws are likely. Be extremely adaptable, prioritize capital preservation, and focus on managing risk today above all else.
Market Sentiment: Extremely cautious ahead of FOMC decision
Weekly Volatility Risk: Extremely High (FOMC)
Supports to Watch:
Immediate Supports: 5236, 5230, 5220-17 (major), 5212, 5209 (major), 5202, 5196, 5192 (major), 5184, 5169-71 (major), 5162, 5155-57 (major), 5147, 5137 (major), 5126 (major), 5117, 5100-03 (major), 5091, 5075-80 (major), 5069, 5056 (major), 5050, 5043 (major), 5038, 5032, 5020-25 (major), 5014, 5010 (major), 5000, 4995 (major)
Resistances to Monitor:
Key Resistances: 5246-49 (major), 5258, 5265, 5276-80 (major), 5295-5300 (major), 5308 (major), 5317, 5323 (major), 5330, 5338, 5352, 5358, 5365-70 (major), 5384, 5395, 5406-11 (major)
Trading Strategy: FOMC Extreme Caution
FOMC Volatility: The FOMC decision is the dominant factor today. Expect unpredictable market swings and heightened volatility. Prioritize capital preservation above all else.
Triangle Pattern: The triangle pattern with resistance at 5246-50 and support around 5184 remains in play. FOMC is likely to trigger a breakout or breakdown.
Long Opportunities: (High Risk) FOMC-related dips present potential long opportunities, but only with extremely cautious sizing. Consider targeting 5220-17 first, and even then, only if it shows a failed breakdown and reclaim. In a severe melt-down scenario, watch for failed breakdown setups around major supports.
Short Opportunities: (High Risk) Counter-trend shorting on FOMC days is extremely risky. If considering shorts, the 5295-5300 zone, after a strong move up, could be one potential area.
Focus on Reactions: Don't predict FOMC outcomes, focus on reacting to price action post-decision.
Bull Case
Triangle Breakout: A decisive breakout above the triangle resistance at 5246-50 could lead to targets at 5258, 5276-80, and then the 5295-300 zone. Be wary of traps on any strong moves post-FOMC.
Bear Case
Breakdown Signals: Breakdown below the triangle support at 5184 could trigger significant selling pressure. Watch for shorting opportunities on failed breakdowns or bounces. Exercise extreme caution and patience in a fast-moving market.
News: Top Stories for March 20th, 2024
FOMC Decision: The Federal Reserve concludes its March meeting, with a decision on interest rates expected at 2 PM ET, followed by a press conference with Chair Jerome Powell. Focus is on the Fed's outlook, updated economic projections, and any guidance on the timing and pace of potential rate cuts and how data will determine those decisions.
Market Volatility: Expect unpredictable market swings around the FOMC decision, with the potential for large gains or losses.
Economic Outlook: Recent economic indicators, the latest CPI figures, and concerns about recession risks will be closely watched alongside the Fed's announcements and commentary.
Intel Investment Boost: Intel receives a major investment, boosting the company and its stock.
EU Regulatory Vote Delayed: The EU delays the vote on a nature restoration law due to concerns and farmer protests.
Remember: The FOMC decision has the potential to cause extreme market volatility, whipsaws are likely. Be extremely adaptable, prioritize capital preservation, and focus on managing risk today above all else.
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