Pandas Weekly Newsletter 3/26

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

$SPX concluded another week hugging the weekly trend line we’ve been discussing for the last 9 weeks now. Post FOMC the market broke back below, bottomed at 3909 and closed the week firmly above the trend. There is a lot of noise in the market and on social media about this being a bull trap before capitulation similar to other bear markets. What we see is 9 weeks of consolidation near a key weekly breakout level. The more consolidation you have near a large area, the more explosive move you will have to follow once a clear trend is established. So whether this is to the upside/downside, we do not know. No one has a crystal ball.

With that being said, the market has managed to put in higher lows and higher highs so far over the past couple of months. There are a number of technical aspects of the weekly that favor the upside. As always, we’ll be ready to trade the move either way.

Over 4100 sets up a big breakout to 4300+.

Under 3909 can accelerate the downside toward 3700-3640.

Between 3909-4100 is largely just noise… This range can frustrate traders and create unnecessary noise about future predictions. It is important to be tactical in this zone.

Economic Calendar & Earnings

source: (investing.com)

Notable Earnings: LULU 0.00%↑

source: earningswhispers.com

Near Term Outlook & Trade Plan

SPX 3970 targets 4000, 4018

SPX 3910-3970 = chop zone

SPX 3910 targets 3886, 3860

Pandas Weekly Watchlist

Our Favorite Trade Setup - NFLX over 332.72

Contract: NFLX 3/31 335c

Targets: 336.50, 343.06, 348.70

Stop: 329 using 15m candle

Notes: NFLX had a nice breakout last week over the 305.63 level and closed relatively strong just under the 329 level after testing 332.72. Watching this setup closely for a break over that 332.72 level the next time it tests it for continuation. Possible to see 343.06 before some consolidation.

Join our Discord!

We provide live commentary, trade alerts, education, and more every day in our discord room. Watch the video below to see inside our room before you consider joining! Join anytime here: https://discord.gg/4CXuRRzwHU

---