Signals & Trading Plan for Monday 2/24/20

$SPX $NDX $RUT continued to drop on Fri 2/21.  This stirred up talks of rate cuts. The Fed is murmuring soothing noises, and they are still pumping money into the system, but the scary part is they may be out ammunition when the economy really falls apart.

From Bloomberg: "Federal Reserve policy makers sound cautiously confident they’ve got interest rates about right as they assess the fallout from the spreading coronavirus.  What worries them though is their ability to rescue the U.S. economy should things go horribly wrong.”

This certainly does not instill long term confidence, but market participants are likely to be satisfied with more short term rate cuts, and more easy money for now.

What this means is that in the short term, we most likely won’t see an end to the current Up Trend just yet.  However, the market and the economy are increasingly vulnerable to events with big bearish consequences.  And when things fall apart in a big way, the Fed may not be able to come to the rescue effectively.

Support & Resistance Levels
The S/R levels below are short-term projections of important price levels.   These are places where the majority of buyers and sellers are likely to lurk.  You will want to pay attention to the change in price behaviors around these levels.  

Read the full article to get the complete analysis.  The full article covers:
Short-term Support & Resistance Levels

• For $SPX $NDX $RUT SPY QQQ TQQQ
  

Market Internal Indicators

• Volatility & complacency
  
• Market breadth
• Level of bullishness
• Overbought / oversold levels
• Bullish / bearish divergence

Scenarios to monitor for on Mon

• Bearish
  
• Bullish
  

Market Projections and Trading Plan

• For long-term portfolio
  
• For short-term trades
  

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