Outlook for Next Week
Week of January 8th, 2024
Good afternoon folks,
The first week of the new year was a bearish one. We dropped over 100 points in a sharp pullback. We dropped from a high of 4790 to a low of 4667, and we closed at 4701. There were plenty of setups on both sides - long and short. Longs paid quickly and the market bounced sharply from oversold points, while shorts were somewhat choppier and paid over hours.
In the High-Roller Room, we took advantage of these opportunities without giving back all of our gains in the chop. We were green every day this week. Here are the results:
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:
This week’s result:
The key level last week was 4760. Early in the week, we broke below and retested it, resulting in a decline for the rest of the week, with an excess low. Scenario #2 played out well.
The key level for next week is 4725. Here’s my projection:
A Third High: If we break through 4725 with enough structure, this confirms that Friday was an excess low and the end of the “deep pullback” from last week. This will propel us to rally 50+ points, making a ‘third’ high and we might even move above ATHs.
Capitulation: If 4725 does not hold, bulls are in deep trouble. We can easily drop another 50-70 points from here, which will begin a cascade of bull capitulation.
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).
Let’s start the new year strong💪
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.