Good morning traders!
Kicking off this week over 42% of the S&P500 market cap reports earnings. Highly anticipated Tech companies are due which have seen a drop in guidance to kick off 2023. While that is where I will keep my focus, there is plenty of sectors that will give guidance on the overall economy. This week should reveal a shift in consumer spending with tech going full force on ad business. We have already seen this with Netflix NFLX 0.00%↑ as they pushed an ad tier subscription. As a user of YouTube I noticed they added ads to Shorts which will bring higher revenues but showing signs of weakness in other areas. By the end of this week we will have a understanding of how each company is handling current economic conditions. Two thirds of Americans are currently living paycheck to paycheck with tightening credit! This is not sustainable especially with necessity costs yet to drop and still climbing.
How will there be ad revenue if very few people are even able to sustain any cash?
S&P500 Weekly Thoughts
My main expectations this week will be a move up to VAH then sink the ship in OVN sessions taking away opportunity from cash session.
Until we break out of last 3 week range, I expect it to remain valid offering opportunities on shorts at VAH and longs at VAL.
POC has been moved down to 4153 from 4177.
Once we break VAH I will look for continuation up to 4220s and a break below VAL for continuation to 40468.
Note this value are 4092 - 4195 was called by me over 3 weeks ago with no budge higher or lower!
See what was said below:
For this trading week I will look for shorts near VAH and longs near VAL. There’s a no mans land between our two upper Value areas given below. This area will be avoided unless plan is updated and we swing shorts below VAL and into no mans land. I call this no mans land as nor buyers or sellers have the upper hand. All we can say is we are trying to accept value lower. Once accepted and the area shows to be valid is when I like to enter. So the in between is more times than not, avoided.
Will be hard to say how far we can trade as it really depends where price is as we lead into a data release. For the start I expect prices to remain inside 4095 - 4192 / POC 4177. Upon trading up to 4177 I think this will be a key area to deploy shorts as this has worked many times so far.
You can find that post here.
