Weekly Outlook & Review
Good afternoon folks,
It was a wild week. Throughout the week, we dropped over 100 points, then rallied nearly 100 points, then lost almost all of it again. Many flipped from bearish, to bullish, to bearish again. September aligned perfectly with seasonality - we got the same decline that we always get. Will it continue following?
We profited in both directions 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.
This is last week’s projection:
Here’s how this week went:
Notice how we failed to break above the level, and immediately collapsed? We lost over 100 points. This is the importance of knowing how to look for good levels. Although I didn’t intend to make it a highly accurate projection, notice how we closed this week right where my lower arrow was pointing.
On Wednesday morning, we dropped an enormous 60 points in only three hours. Suddenly, in the middle of the afternoon, we shot upward at an incredible speed and made back nearly all of the day’s losses. This was a clear change of tempo from what we were seeing the past two weeks: weak rallies, followed by sharp drops. In the next two days, we rallied close to 100 points.
I will share a key level going into next week, which will probably set up the direction over the next few weeks. This level is 4300. If bulls keep holding 4300, we can rally 100-200 points. If 4300 breaks, we can easily drop another 100 points. This week will be critical - you want to be paying very close attention.
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. Stay sharp ;)
- 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.