Market Outlook for the Week of 8/7/23

Welcome everyone to the Traders Market Intelligence Report, brought to you by WealthBuildersHQ.com. This update is from Monday the 7th of August, 2023. My name is Robert Roy and let’s dive right in. So keep in mind as we get started here that everything we look at is for educational purposes. Nothing’s meant to be advice or recommendations. If you like what you see, something, anything, a candidate, a set up, an indicator, anything, make sure it fits your own personal risk profile and risk tolerance forever taking on that trade setup or indicator. Alright, so let’s go ahead and jump right into the S&P 500.

Now, we finished on the downside of the market today. Woo, baby. We just dropped like a flipping rock, right? We had a nice pushup early on there. We got to noontime and it was kind of like, nah, nah, nah, nah, nah, nah. Whoosh, right off from there guys, it just fell straight down the rest of the day. Horrible, horrible move to the downside, right? Finishing up this week, you know, of a bunch of down days. So you can see we’re down about 24 points today on the S&P 500. When we look at the vix. So the VIX had a a move up, it did pull back a little bit. So again, an overreaction. We’ve seen that a lot lately. Not surprising, whenever you get really low or really high VIX levels, particularly really low, any move in the market could cause a dramatic move in the VIX and then it corrects, okay? Which is exactly what it did.

Now, if we jump in and look at do weekly S&P 500 chart, right? We’re still in an overall uptrend. I mean doing well, but look at this last week folks, down 104 points, this week on the S&P, right? If we look at the monthly chart, you can see we pushed up into the upper resistance last month in July and we’re already broken through the bottom resistance in there. We’ve had a fairly strong hold of those lines through the last six or seven months. And this month so far, where are we like the fourth, right? We broke through. Now it doesn’t mean we’re gonna continue to drop. We’ll, we’re gonna see.

We’re gonna go back and look at a daily chart right now. Let’s go back to S&P 500. Alright? So right now, 4448.47. So call it 4448.50. That is our support level right now. Over the next couple of days, we will have a confluence with our uptrending support line in there. If we look at the upside, we’re looking at 4,500 with the 21 moving average as the confluence level as well. So we’re in a neutral bias right now. So what does that say? Sit on your hands. Sit on your hands and watch. Be very careful, it’s day trade season. If you’re in a neutral bias on the S&P, <horn., No swing trades that are directional, no swing trades that are bullish or bearish. It doesn't matter. Cashflow positions, whole different story. Directional trades to hold overnight? I'm not doing it in a neutral market, personally. Neutral means we're not going anywhere. Now, it doesn't mean we're going sideways, right? But we don't have a clear direction yet. We may in the next couple of weeks, we may, and you may be the trader that says, "no, no, Rob, I'm gonna jump in early." You go for it, dude. You go for it and you know, hopefully it works for you and you kill it, right? Enough to retire off of. Not the way I trade. I am very much about probabilities and probability states we're in a neutral bias. It is best to be very short term in the market today and get out. Because, we could easily have a push back up to that resistance level or a drop down to support level. And when you look at days like today where we had the move up, you know, we went up, we came back down, right? Closed up that gap. We pulled back up, man, it looked great. And then right to the downside. I want to avoid that from happening. And swing trades are not the place for me to be because of that. Usually on a swing trade, I’ll have a larger risk profile than I will on a day trade. All right?

So with that ladies and gentlemen, have a great rest of your day. Hey, listen, make sure that if you like what you see, make sure you go ahead and follow along with us on the various social platforms. Keep up with us on YouTube here, ring the bell, subscribe so you keep up with all the latest content. We just recorded three new videos yesterday. That should be up in the next week to two weeks on some great training topics right on YouTube there. So make sure you’re checking it all out. Have a great rest of your day, great weekend, and I will see you all at our next update. Bye for now.