4 Jun 2023 SPX Weekly - Break

Accuracy: 64/70 (91.43%)

SPX above 4100 - Correct!

Paper Trade

Basically took full loss on last week's paper trade as SPX broke above the key resistance area and close 4282 on Friday. It was an aggressive play with 1:1 risk reward ratio. Would've been in the green if I were to put it safer around 1.5:1 risk reward which should get nearer to 4300 strike.

Last Week

We've been rejected off the 4200 area for quite abit, last week we finally broke up from it. Last Thursday and Friday were the defining moves.

On the 15 minute chart, we can see the strong Thursday rally followed by Friday gap up and went higher. The bullish momentum is definitely strong.

Economic Calendar

Seems like nothing really special on the economic calendar side, if no new events or news we should be expecting continued momentum. Or we should put it in another way, if we see ANY news that seems impactful or causes higher volatility, we could expect some pullback from this parabolic rally.

Next Week

Can't resist myself to draw this because it looks so promising. The white lines are uptrend support lines and the 4230 break out area. Projecting these lines forward they will meet somewhere in the upcoming week.

The green 'prediction' just falls in place so naturally into these support areas. With the bullish momentum, I'd even think to pull back towards 4240 is quite a bearish scenario.

Upside resistance around 4300 as previously already marked. I do think this resistance will be challenged if we see continued momentum. Might be the next area of consolidation before the next bigger moves.

Prediction

SPX above 4200

Paper Trade

Tuning it to a 1.5:1 risk reward ratio trade. Upside and downside within my support and resistance areas. Let's see how this plays out.