Weekly Outlook & Review

Week of August 14th, 2023

Good afternoon folks,

This week’s action was a typical summer week - slow and range-bound. We were stuck inside a 40-point range from 4470-4510, with a few failed breaks on both sides. We closed near 4470, not too far from where we started the week. The weekly candle is a large indecision candle.

Supply/demand zones perform very well in these conditions, where many trend-based systems fail. We identified key reversal areas and were able to profit 10-20 points consistently.

Here’s last week’s projection of SPX, which I estimated based on how price would react to the 4470 level:

Here’s what happened this week:

The 4470 zone proved to be the critical pivot for the entire week. We did breakout to 4520+ on Thursday due to CPI, which I indicated would happen if 4470 was held. This move would quickly collapse, however, and we ended the week right back at 4470.

This is the power of identifying the right levels. We traded these levels every day, with targets I laid out in my daily plans. Here are some excerpts from this week:

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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 did not provide a substantial advantage to either side. We were left with a large weekly indecision candle. As the name suggests, it’s not strongly bullish or bearish. The week’s action depends on one key pivot area - 4450. We tested 4450 this week and quickly bounced off it. Based on previous price action, if bulls can maintain this level, we will likely have a very strong bounce. If this area fails to hold, we have a lot more downside to go. 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. Good luck.

- Tradewriter

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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.