Market Analysis for The Week Ahead

December 22-27, 2024

Since I had a lot of people ask how I sniffed out this SPY 0.00%↑ QQQ 0.00%↑ selloff, I did a non-paywalled recap of the progression of most of what I saw. How I Sniffed out the Swing High

I posted a “Trading Doggy Style Starter Kit” that I think will benefit both free and certainly paid subscribers. I will continue to build this out over time with additional videos, examples, and explanations. It was updated last week with some additional content.

Trading Doggy Style Starter Kit V2

As we discussed last week, much of the market was oversold but at the same time participants were still fully long and concentrated in MAG7. This got even worse on Monday as it appears the March contract of NQ got extended to the long side (see the above post). NYMO went to -100 before the Friday rally, and this time NAAIM came down nicely from 99 to 82.5. Based on the timing of the release, positioning was likely washed out a bit further than 82.5 represents.

The market finally found its feet on Friday at an area we expected it to do so. The question now in front of us is whether we see a lower high to short to new lows, or if Santa Clause is coming to town.