Pandas Weekly Newsletter 4/16

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

Last week ended close to an inside week that failed to breakout over 4119 but held support at 4073. We opened this week near that support again and held, leading to a 90pt move to 4165 before closing right near the high of last weeks candle. This range between 4133 (was 4119) and 4195 is a key resistance zone for the market. Once it clears we will be in a firm uptrend targeting 4325. The $VIX has dropped significantly to levels we not seen since last year. This makes our chop zones even more difficult to trade and requires more patience for traders. We noticed this the last two weeks with very few days of follow through and a lack of momentum.

The next time the market fails 4073 (last weeks low), bulls are most likely not going to be able to hold and a fresh leg lower to 3950 is set up. Puts can work best once this level fails. Calls are better once the market is more firmly out of this zone above 4295. In between requires traders to be more tactical and preserve capital.

Economic Calendar & Earnings

source: (investing.com)

Notable Earnings: BAC 0.00%↑ JNJ 0.00%↑ GS 0.00%↑ LMT 0.00%↑ UNH 0.00%↑ NFLX 0.00%↑ MS 0.00%↑ TSLA 0.00%↑ AMX 0.00%↑ PG 0.00%↑

source: earningswhispers.com

Near Term Outlook & Trade Plan

SPX 4148 targets 4165, 4195

SPX 4100-4148 = chop zone

SPX 4100 targets 4073, 4039, 4000

Pandas Weekly Watchlist

Our Favorite Trade Setup - GOOGL over 109.17

Contract: GOOGL 4/21 110c

Targets: 110.30, 111.45, 113.59

Stop: 107.80 using 15m candle

Notes: Managed to close out the week strong again. I like this one for continuation over the previous weeks close at 109.17. There can be some resistance at 109.68 so you could also wait on that level to clear for more confirmation. Possible to see 111.45, 113.59 levels next.

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