Weekly Outlook & Review
Good morning folks,
This week’s action was incredibly strong and swift to the downside. We dropped over 150 points in a few days - a volatility that bulls rarely match. It’s a perfect example of the old wall street saying: “the market takes the stairs up, and the elevator down.”
Supply and demand levels traded exceptionally well, offering near-perfect entries and exits during the whole down move.
We ended the week with an oversold bounce - the typical indicator of a bottom. Although we need more evidence to confirm this. I traded this bounce yesterday and recorded it. Here’s the video:
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 week’s action was a large, rapid dump. The market is known for having this kind of action. It often dumps hard and fast, then recovers it all just as quickly. Given that we are in an uptrend over the long term, this recovery may be a potential scenario for next week. The 4400 area is the key pivot in determining this. If we break through this level, we’ll likely continue rallying for another 40-50 points. The downside continues if this level fails to be broken - an even stronger dip. This plan will be updated in the daily plans.
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.
- 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.