OP Wire 3/4 (OP – Lite)

U.S. Stock Futures Subdued Amidst Record-High Rally Cooling:

• U.S. stock index futures have shown signs of cooling after a record-high rally.
• Wall Street averages surged to new highs, driven by an artificial intelligence-led rally in technology stocks.
• Softening consumer sentiment and manufacturing activity have bolstered expectations of earlier interest rate cuts by the Federal Reserve.

Focus on Federal Reserve Monetary Policy:

• This week, all eyes are on Fed Chair Powell’s testimonies before a House Committee and a Senate panel.
• Powell is expected to reiterate the Fed’s stance on maintaining steady interest rates amidst sticky inflation.
• Investors seek clues on the timing of potential rate reductions, with expectations of a gradual decrease starting in June.

Upcoming Economic Indicators:

• Following Powell’s testimony, the February Non-Farm Payrolls data release on Friday will provide insights into the labor market.
• The report is crucial for Fed rate-setters’ considerations in shaping monetary policy decisions.

Oil Market Dynamics:

• Crude prices experienced a slight decline in midday European dealmaking.
• Despite support from OPEC+ maintaining production cuts, calls for an immediate Israel-Hamas ceasefire tempered some momentum.
• Oil markets enjoyed strong gains fueled by expectations of tighter supplies and optimism over potential U.S. interest rate declines.

OP Wire Trade Plan:SPY/SPX-

Consolidation, trend higher, consolidation, trend higher… Resulting in 15 of the past 17 weeks being green. Overbought? Maybe. Extended? Maybe. Do we care? As followers of OP Systems, NO. The trend continues higher, and until a daily timeframe change in character is seen, bulls do not need to worry.

The main watch for this coming week is whether buyers can continue to sustain the directional move. For that, the main level of interest is 5066.5 which is last week’s breakout point. Buyers will be looking to defend this level, and if it can continue to hold as support, price can test 5100, 5150, 5200.”

If you look at the low for last week, you’ll see that it was 5060, and the high was 5149.25… Both of which align nearly perfectly with the main level of interest and upside target that was shared. The bullish theme continues with prices marching higher, and respecting the July ‘23 to Oct ‘23 fib extensions incredibly well. What’s next?

Similar to last week, the main watch will be whether buyers can show acceptance above the prior all-time high at 5123. If they can, it will suggest that the directional move is not yet complete, and price will target 5190, 5230, and 5250.

Sellers, if they show up, have the main objective of showing acceptance back below 5123, which would result in a failed breakout. This could potentially result in a retest of the 5100, 5075, and 5060 areas of support. 5060 remains as a crucial area of support for buyers to defend, as that is the low following the 2/22 gap higher.

Upside levels of interest: 5190, 5230, 5250

Downside levels of interest: 5100, 5075, 5060

Notable Economic Data

• All week: Fed speak
• Wednesday: Beige Book, Powell Speech
• Thursday: Jobless Claims
• Friday: NFP

Notable Earnings

• Tuesday: TGT

Should make for a wild week. Was glad to close the AAPL play with another win Friday! Will look to enter lower soon plus looking to buy BABA LEAPS again soon! See yall in chat✅🏆

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