12/5 Trading Plan - Tuesday Recap and Day Ahead

📊 Market Sentiment: Neutral

We remain in consolidation, holding between 4550-55 support and 4575-80 resistance.

🔄 Recap

After rallying 460 points from October 27th to November 22nd, ES has been stuck in consolidation for two weeks. The market has been largely stuck between 4550-55 support, and 4575-80 resistance, making the round trip countless times.

📈 The Markets Overnight

🌏 Asia: Up
🌍 Europe: Up
🌎 US Index Futures: Up
🛢 Crude Oil: Down
💵 Dollar: Up slightly
🧐 Yields: Down
🔮 Crypto: Near unchanged

🌏 Major Global Catalysts

CEOs from the eight largest US banks will testify before the Senate Banking Committee today, voicing their opposition to a rule that would increase capital requirements by 20%-25%.

🔍 Key Structures

• 4755: A far off target for those with a big picture view
  
• 4680: A re-test of the August highs
  
• 4658: Important resistance on June 20th and July 25th 2023
  
• 4640: A key zone
  
• 4618: Green-dotted line in the chart
  
• 4573 (with 4580 just a little above): A 2 week resistance cluster
  
• 4556: A key zone, tested 25+ times in the last week
  
• 4542: A multi-month level, it's been support since Nov 20th
  
• 4520: A key zone from Nov 15th-20th
  
• 4497: Important channel resistance dating way back to December 2022s and February 2023s highs
  
• 4450: Immediate backtest point of the line we lifted off after CPI on Tuesday November 14th
  
• 4430: The rising bull market trendline connecting the October 2022 and March 2023 lows
  

📉 Support Levels

4563, 4556, 4548, 4542, 4540, 4531, 4520, 4513, 4507, 4497, 4484, 4470, 4462, 4450, 4444, 4436, 4430, 4424, 4418, 4413, 4408

📈 Resistance Levels

4573, 4580, 4587, 4590, 4600, 4609, 4618, 4622, 4633, 4640, 4646, 4658, 4666, 4675, 4680, 4693, 4702, 4710, 4720, 4724, 4729, 4737, 4746, 4755

📝 Trading Plan

Bullish Scenario: The plan is to remain long as long as 4556 keeps holding.
Bearish Scenario: If 4542 fails, we should see a short-term bearish trend takeover.

💡 Wrap Up

The market remains in consolidation, with a bullish structure. The focus is on trading the consolidations, with optionality to be exposed during the trend. The plan is to remain long as long as 4556 keeps holding, with a focus on failed breakouts/breakdowns.

Disclosure: This is not financial advice and is for informational purposes only. Please consult a professional financial advisor before making any investment decision.