Weekly Outlook & Review
Good afternoon folks,
We had another outstanding week where I shared hundreds of points of alpha through the daily market plans. The market was rather indecisive this week, going from ranging to exploding upward to crashing downward, to ranging again.
We’ve been stuck in an aggressive downtrend ever since late July. Bulls have made multiple attempts to rebound, but they all have failed so far. This week, we had a shocking 70+ point move to the upside which was followed by a 100+ point move to the downside the next day. Supply/demand thrives in this type of environment. 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 week’s action was inconclusive. It was essentially a large, volatile range. Last week, I projected that 4400 was the key level in determining who takes control over the next month:
Here’s what happened this week:
We went all the way up to where I projected, then dropped back down. We also failed to break below last week’s low around 4340. Where did that bring us? Right back to the 4400 level. Neither side wins.
For next week, the 4400 level will be key once again. We can expect further downward action if we can’t stay above this level, possibly taking out the lows and bringing us toward 4300. If we stay above 4400, we can rally 50-60 points to where we were on Thursday, at least. Possibly higher. Bulls are on the defensive and bears are on the offensive, for the most part. This will be updated and reviewed in the daily market 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). I released a new post yesterday, the complete supply and demand strategy - part two.
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
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.