Weekly Outlook & Review
Good evening folks,
It was an incredibly bearish week, with the market dropping 150+ points. More than 130 of these points were lost in the last two days, making it one of the largest drops of the year. This was due to the FOMC announcement on Wednesday, which started an intense cascade of selling that did not slow down until Thursday evening.
We had another great week, gaining dozens of points and a highly accurate FOMC prediction. 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 what I said in last week’s post:
We’ve ended the week slightly red, with an ugly-looking weekly candle. Bears currently have the momentum advantage and are trying to break through key support at 4430 to break down to the 4300’s.
The key support level was indeed 4430. After it broke, bears wreaked havoc on the market. It was the most one-sided action we’ve seen in a while. This weekly candle was another eyesore. We closed near the bottom with one of the most bearish-looking candle types. Now, bears are eyeing 4300 and 4272. The bulls are aiming to squeeze back to 4400. That will be next week’s theme. We will likely get lots of ranging and fakeouts before the real move comes - both sides need to compose themselves. The key level for this week is 4340. This is where we closed on Friday.
Since we day trade, we don’t have a weekly bias. We reset it every day. We will trade whatever setup presents itself, bear or bull. Trade setups, projections, and intraday levels are found on the paid substack, as well as supply/demand education so you can trade self-sufficiently (subscribe button below).
Chart:
This is not a prediction, just a general outlook of where price action goes next. That’s all for this week’s outlook. Good luck.
- Tradewriter
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.