Market Outlook for the Week of 5/22/23

Welcome everyone to the Traders Market Intelligence Report, brought to you by WealthBuildersHQ.com. My name is Robert Roy, and this update is for Monday, that would be the 22nd of May, 2023. Hope you had a great trading day. Boy, I was interested in rollercoaster today while Powell was out there speaking, and the Dems and the Republicans walked away from the table today. Of course they did.

So if you look what happened there folks, yesterday was a great day in the market for us yesterday, right? We had a really nice bounce to the upside yesterday. We broke through the 4181. We broke through the recent swing high. We broke through the 4195.44. We broke and broke and broke and today we pulled back. Now we can’t really count the 4186.92 any longer because it is no longer our recent swing high. Well, I guess it is the last one we have, but it is really not of importance as far as a support or resistance.

But we did come down and tap on that 4181 today. Now, I know it’s funny, I listened to the talking heads on CNBC and what are they talking about – the 4,200 level? Yes. And when you’re at a thousand points, if you wanna count every a hundred point level as important you can. Now, they may be going back historically and looking at it and going, you know, you see that about 4,200, it continues to fail. Well, yeah, but it’s 4181. If they actually understood the mechanics of trading, they would understand that 4181 is the level, not 4200. 4200 is an arbitrary round number that has psychological appeal to it. That’s all it is. People remember hundred point levels. It’s very simple.

Today we bounce, bounce, bounce. We stretch up to a higher high. We pulled back, close lower than we did yesterday. We’re only down six points. Today on the close, right? When you look at VIX, right? Do, do, do so about 16 70, 71, I think this is what our actual close was. Were a few minutes behind on this one here, but we’re still in that yellow zone. Folks. We had a bounce today on VIX. I thought it was a lot. I don’t think it should have been as big as it was. I think the, the concern of how fear kicked in, right? With what’s going on with the the talks on the credit, goodness gracious, the debt ceiling, right? They’re raising the debt ceiling – the talks on that. I think that just stirred people really, you know, really rubbed them the wrong way, right?

So S&P 500, if we look at it from a standpoint of multiple timeframes, we’re gonna look at a weekly chart next. And we pushed into the 4181. We closed above it. First time we’ve done it now on the upside since August 12th of last year, right? That week off, and we we’re up there, one more week, failed and never closed a week back above there. This week we closed. So now from August until May, September, October 9th, December, January 5th, March, may, nine months, nine months since we’ve been above that 4181, right? If we look at the bigger picture for monthly, right? We were getting these higher, higher highs. Again, we got that close above on the monthly now barely 4191.98. So call it 4192 versus the 4181. So about 10 points, 11 points above, not that big of a deal month is not over. It’s still a partial month. So we’re not really concerned with that at this point. So, that rectangle shows that’s not a whole lot happening, right?

If you look at it from intra day standpoint today…So we started the day up. We started the, the day up. We pulled back. We failed right about noon time or so. 12 o’clock. We had Powell up there. I don’t remember what it was. I had ’em on, but don’t remember the exact time, but you could see this big drop, nice bounce in there. Yellen was out there talking as well today. So some of what she said caused some strife some concern out there as well, right? So, you know, hey, it is what it is, what it is, what it is.

Let’s go back to daily one last time and wrap it up. So what are we looking at for this week now? All right, on the downside, 4181 is an easy one. We’re gonna look at this. 4144.59 level as the next downside. On the upside. 4254. And now we really, really start rocking if we get up there because we get through this 4181, I’d love to see the move a little higher, retest and bounce. That gives me a clearer signal at this point. And then we’d be looking for the next swing highs, which take us up here about 4317, which we’ve got a 4312 level on the upside as well. There you have it. Ladies and gentlemen, make it a profitable day. Stay focused on the quest to becoming a great trader. Keep crushing it. And remember, you’re just one trade away. Take care everybody. We’ll see you our next update. Bye for now.