Pandas Weekly Newsletter 2/26
Every week we review everything you need to know about the stock market for the week ahead as an active or passive trader.
Market Big Picture & Long-Term Technicals
Weekly breakout, two weeks of consolidation, backtest of weekly breakout. This is what we’ve seen unfold over the last 6 weeks. This is an important week for bulls. After holding the weekly breakout backtest + 200dma, it would be ideal to recapture 4000-4050 this week to build a trend to 4280-4325 targets. A decisive break below 3950 would give more fuel to the downside and risk retesting 3800. There is a slew of economic data coming out this week with PMI data on Wednesday. This data should provide more insight into how well Chinas reopening is going.
Economic Calendar & Earnings
source: (investing.com)
Notable Earnings: TGT 0.00%↑ LOW 0.00%↑ BBY 0.00%↑ COST 0.00%↑ NIO 0.00%↑ ZS 0.00%↑
source: earningswhispers.com
Near Term Outlook & Trade Plan
After testing 3950 last week and holding this key level + 200dma, we want to see if bulls can defend again. If this is retested and fails, we can see a move to 3900. A move over Fridays high sets up a backtest at 4000. While this can prove to be a tradeable bounce, the upside can gain more momentum once 4015 is reclaimed.
SPX 3978 targets 4000, 4015
SPX 3950-3978 = chop zone
SPX 3950 targets 3923, 3900
Pandas Weekly Watchlist
Our Favorite Trade Setup - NFLX under 313.39
Contract: NFLX 3/3 325c
Targets: 310.50, 305.63, 300
Stop: 317
Notes: NFLX broke some key support levels over this past week at 343 and 329.82. Next area of support to watch is 313.39. Under this level can bring further downside towards 300. We could also be entering oversold territory and be due for a bounce so calls will also be on watch if it breaks back above 321.50.
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