Weekly Outlook & Review
Good afternoon folks,
Hope you’re all enjoying your weekend. This week’s action almost felt like a repeat of last week’s action. Both weeks began with a steady range, saw a sudden drop midweek, and then a sharp rally. We made new lows, nearly penetrating 4200.
As many of you know, I am starting a live trading group soon. Details will come this week, both here and on Twitter.
Here’s a recap of this week’s trades and ideas:
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.
Last week, I said that this week would be pivotal in determining direction over the next couple of weeks. We had two major moves this week which demonstrate this. The first is the mid-week drop to 4204. This was right above 4200, which is an extremely important level on the daily timeframe for many reasons. We then rallied over 100 points in a single day to 4325. There were impulse moves on both sides, but this week ended strong for the bulls. The test and failure to break 4200 may help their cause further. We have had some news over the past 24 hours that could make the markets uneasy. We won’t know how much this will affect the market until tomorrow night at 6:00 pm when futures open.
The key level for this week is 4270. Movement back under this level is not favorable for bulls, who want to base above 4300 to keep this rally going. Bears want 4270 to break as that will invite further action into 4200 and possibly make new lows into the 4100s. A rally from 4300 would break the current downtrend and move to at least 4380, possibly as high as 4420.
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. Happy trading :)
- 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.