Welcome back, everyone.
I hope you all had a great week, both in and out of the markets. This post will dive right into S&P levels as we observe a sharp move lower. Any data released in the coming month is completely irrelevant; this weekly plan aligns not only with the ES (including SPY/SPX) but also with the overall markets. By using swing levels, we will be able to capture large moves across a significant number of stocks. There will be clear signs when the market is ready to rebound, so you will not have to worry about picking a bottom. As I previously mentioned, waiting for strength provides far greater odds of being right than attempting to buy a low. We know sellers are clearly in control, so we need to see buyers flip the script and reclaim a key level that sellers are currently defending. Let’s dive into the volume profile structure of the S&P and determine where buyers and sellers are active.
S&P Levels
First, we need to look at the big-picture view, which shows the swing-high to swing-low trend and the bounce in price action we have seen in recent months. Looking back, we established a range just below 6600. At the time of writing, we are actually trading below those lows. This is a great example of how to navigate prices when the volume profile is less effective. A basic but successful approach is to use large psychological numbers for targets. For the downside, this means using 6550, 6500, 6450, and 6400 as key levels so long as the move lower continues.
