Good afternoon folks,
It was a decisive week in the market as we made three separate pivotal moves: first, we made new all-time highs on Monday rejected right before 5050. Then we dropped 120+ points the next day due to a bearish CPI reaction. We recovered that high and shot toward all-time highs again, but failed to break above it on Friday. This has not been the typical “dip, then break ATH” rally week that we would normally have.
In the High-Roller Room, we had a breakeven week. This was due to tough price action and being out of sync with the markets. I kept my losses small and managed risk well so that I didn’t go into heavy drawdown.
Outlook for Next Week
I trade the S&P 500 index daily and use supply/demand levels as my main strategy. I focus on a handful of core setups within these levels (found here) which typically appear 1-3 times a day. I take one or two trades a day, targeting gains of 10-30 points. My objective is to maintain consistency and leverage it, rather than trying to get as many points as possible.
Here’s last week’s projection:
Here’s this week’s result:
We got a blow-off top type of move at the start of the week, but the bearish overreaction to CPI meant too many shorts were trapped and got squeezed. This proved not to be a “real” move as we failed to break Monday’s high and closed right at our key level. Now it’s no longer bullish or bearish, but neutral.
The key level for next week is 4975. Here’s my projection:
New ATHs: This assumes that the 4975 level holds if it gets tested, and we build enough of a pullback early in the week to rally 70-110 points higher
The end of the uptrend: If 4975 breaks and we start moving below 4920, it could signal the end of the uptrend and be the start of weeks of bearish action.
That’s all for this week’s outlook. All of this will be updated and executed in real-time in The High-Roller Room (click here to get access).
- T
Disclaimer: Investing in stocks, bonds, futures, options, and other securities carries significant risks. Some or all capital may be lost. With leveraged instruments, losses may exceed initial capital. Past performance of a security does not guarantee future results. Any content from this newsletter should not be taken as financial or investment advice, but for informational and entertainment purposes only. This newsletter simply shares my personal opinions and notes. Consult with a registered financial/investment professional. This newsletter and its authors are not licensed financial/investment professionals. By reading and using this newsletter, as well as any other publications, you are agreeing to these terms.
