Outlook for Next Week
Week of May 6th, 2024
Good afternoon folks,
It was a pivot week in the market - bears attempted to make a new low, but the bullish reaction to FOMC sealed the deal. They failed to penetrate 5000 and established a strong base right above it. This is what bears used as a launch pad for the rest of the week - we climbed 130+ points in two days after this.
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 started the week with a false rally - bulls were unable to break 5115. This caused a huge collapse in price down to 5020. FOMC was an extreme event which jolted the price 80+ points in both directions. We then tested the low one more time & set a major pivot before rallying 130+ points. Once the auction failed on the way down, bears’ fate was set in stone.
The key level for next week is 5100. Here’s my projection:
Rally: If we break above 5100, we can see a rally to 5140, 5200.
Dump: If we fail to hold 5100, we can see 5040, 5020.
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.