Market Outlook for the Week of 7/24/23

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 the 24th of July, 2023. I hope you’re having a fantastic day. As we get started here, keep in mind that everything we look at is for educational purposes. Nothing’s meant to be advice or recommendations. If you find something that you like, a candidate, a trade setup, something, anything, make sure that you confirm that it fits your own personal risk profile and risk tolerance before ever taking on that trade setup or indicator. All right, so with that, let’s go ahead and jump in.

We’ve got about four or five minutes left for the market to close. 1, 2, 3, 4, 5. So we had a nice little bounce on Monday. Tuesday was a great gap, and go Wednesday was a, a gap where it was an exhaustion gap, ran outta steam Thursday, gap down, bad news. Couple of earnings reports, right? The Netflix is of the world and today, eh, it’s up, it’s down. We’re down about three bucks. We’re about three bucks right now. Three points from yesterday’s close. Really not that big a deal. Not surprising to see the pullback today after the run we’ve had, we’re still in bullish territory for the week.

If we go over and look at a weekly chart of the S&P and instead of the daily, you can see the candle is still a bullish candle, right? We’re in the middle of the body. We’re not anywhere near an extremity high or low, but that’s okay. We’re, we’re setting up. Nice. I’m not upset about it at all. Very pleased actually with it, right? There we go. There’s the deal. I knew I’d get it right sooner or later, right?

So where are we looking at right now? Okay, so as I said, we’re still got about three minutes to settle out the day. We’re looking at 4519 as the downside. That 4542 is a key level, key level for us right now. It’s the -.272, which is hesitation, and then that 4580 is our next upside target. As long as we keep going the way that we are, as long as our moving averages keep spreading apart, life is good. We’ll be placing directional trades in the setups that we use over and over and over again as long as we can get these confirmations to continue.

When we go and look at the VIX, fear, fear is down, so fricking low. It’s scary, right? We’re sitting down right now about 13 and a half on VIX. 13.65. Super low, ultra low right now as far as what VIX looks like for us, but very much in line with what we’ve had the last month and a half to two months, right? So what does that mean for us with the low vix? Good pricing on directional trades, right? Long-buying options, good pricing on there, but you don’t have the volatility in there. So you don’t get the big moves either. A little bit higher VIX means when the market moves, you’re gonna have a better movement of gamma. You’re gonna have a better movement of your delta, you’re gonna have better movement of your options price. So although it’s a good buy on the entry, and I mean it’s a good price for the entry, not good buy, it’s a good price for the entry. It may have some disadvantages based on some of the things that are going on out there with it, like how the volatility affects the price of the options and the increases of the option as the market moves in your direction, right?

If we go and look at the intraday today, just to kinda wrap it up and see what happened there. So what happened? We got the gap up. We had a quick pullback, a move up, a quick pullback, lower highs, lower lows. We got a bounce, actually it was a higher or low. We got a little bit of a bounce. We could not break the previous high, but when we were pretty much range bound that first hour of the day, which is a trade setup called a Power Hour that we do. But that first hour of the day, we range bound in there. We pushed up on it in the afternoon about one 30 or so and fell back out. We’re looking at the bottoms right about where we are now. You could see that we have held nicely to the lows of the day here.

We got about a minute left, right? I don’t expect a whole lot, but we could get a break or a push up a little bit. But we’re there. We pretty much have settled out for the day where we’re closing that gap up and we’ve got very little to the upside. It’s up right now, 1.65. So tiny, tiny, tiny, tiny, tiny bit, right? If we go and look at the bigger pictures, we go back to SPX and we look at the bigger picture, right, market just closed, right, so we’re looking at our daily chart here. I want to go back. Bigger picture, right? Overall pattern, that bullish trend is still in place. Very nice, right? Very, very, nice. I love it. I like it. I like it. I like it. Guys, can you tell I’m excited here. It’s been a great week for sure, right? We look at the weeklies, do, do, do, do, do. Good strong move up. We’re putting higher highs each and every week. I like it overall.

We look at the monthly. Let’s go back over here. Let’s take this fib in here on this SPX and let’s delete that out of there. We don’t really need that. So we’ll take it off of the monthly as well, right? Or we will take off the monthly as well. You can see we’ve got that uptrend going in there. It’s a little bit of a steep angle for me on the uptrend. I don’t like them like that. I like angles that have less steepness, less, less steep in there like, you know, the downtrend, I like the pattern, the shape of the downtrend, the angle, right? This a little bit steep, but we broke outta the 4181 last month with the vengeance on the open. Ran like crazy. We’ve got about 10 days left in this month right now with today being 21, we end on 31. So we’re about 10 calendar days, not trading days left, right? So we wanna see where it goes with that. 4818.62. That’s the key level that we’re looking at on the upside.

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