Market Analysis for The Week Ahead

December 29-January 3.

I did a free video with our next installment of the series “Is it Going to Zero?!” where I take a look at UPS 0.00%↑ Is UPS Going to Zero?!

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

SPY 0.00%↑ Last week was an inside week and was therefore objectively neutral. Futures saw a failed gap up on Sunday night which led to some early Monday weakness. Monday looked below and failed the major weekly 5982.5-5987.5 spot but then rallied to and through the Friday 12/20 high which was the key level to open upside. The Tuesday shortened session was a rather silly and frothy session with 4 sets of single prints including an end of day spike. If you are unfamiliar with these terms, see the starter kit above. This set up the index for the major upside back test for the week on Thursday.

In last week’s plan I used a picture of US500 the eliminate some of the noise of ES contract roll in visualizing this important back test.

Bulls failed this reclaim during both the Wednesday overnight session and on Thursday during the cash session leading to a very large gap down and go on Friday.

The backtest was even more clean if you look at the ESH2025 chart specifically as opposed to ES1 (also eliminates contract roll noise)

The Friday session came all the way back to the major weekly ES 5982.5-5987.5 spot and held. This will be a key area for the upcoming week as well and looking left we can see why.

Again, inside weeks are objectively neutral and relatively straightforward to play. However, I’ll spend quite a bit of time diving into subjective analysis as I did for the week of 12/14.