Outlook for Next Week
Week of December 26th, 2023
Good evening folks,
The market hit a climactic state this weekend as we brushed all-time highs. The beginning of the week was a typical trend continuation, although we saw signs of slowing down. On Wednesday we hit a climax right under SPX 4800 - around 4787 as we got close to all-time highs. This was followed by a rapid 80-point sell to 4700. The sell was almost entirely recovered in the next two days, showing that bulls aren’t done yet.
The High-Roller Room was green every day this week. Here’s a recap:
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:
I foresaw an overall range - this is roughly what happened. Based on the results, it seems that scenario #2 is happening. This would imply that we’ve got more upward action to go.
The key level for next week is 4745. Here’s my projection:
The Decline: If 4745 fails to hold, we will see a drop to 4700. At 4700, it will be very difficult for bulls to mount an uptrend again - which means we could see a further drop to 4655, the pre-FOMC level, and lower.
All-Time Highs: If 4745 holds, there’s a very high chance we visit and possibly break all-time highs this week. We’d need to rally another 60-70 points to achieve this.
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).
Enjoy the holidays ;)
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.