Weekly Outlook & Review
Week of July 17th, 2023
Good morning folks,
Except for a slight pre-market dip on Monday, this week was ferociously bullish. We bounced off of key 4400 support before rallying non-stop for five days. There were few dips, and the ones we had were exceptionally shallow. It was nearly impossible to make money this week if you were shorting. The only exception was Friday when we had a decent-sized pullback in the afternoon.
In last week’s review, I outlined a potential path for price action during the week, based on the 4400 pivot holding or breaking. Here’s the projection:
Here’s what happened this week:
Outlook for Next Week
I day trade the S&P 500 index 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 generated a 150+ point move, from bottom to top. Going into the week, we can expect Friday’s minor cool-down to continue. It’s very likely that we pull back, although we’re not sure whether it will be deep or shallow. Pullbacks can simply move sideways, giving no real opportunity to capitalize on intraday shorts.
This was the case in June (chart below) where we remained in a tight range for a few days, then rallied upward again. It’s best to be cautious with shorts until more confirmation arrives. Until then, we’re moving higher. Bears are on the defensive this week unless they can break below this week’s pivot, 4470. The levels I’m focusing on are 4427, 4451, 4470 (important), 4510 (important), 4534, and 4552.
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 paid substack, as well as supply/demand education so you can trade self-sufficiently.
Chart:
That’s all for this week. Happy trading :)
- 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.