Pandas Weekly Newsletter 5/29

Every week we review everything you need to know about the stock market for the week ahead as an active or passive trader.

Market Big Picture & Long-Term Technicals

The week before last we saw the market close strong near 4200 after several weeks of basing. Then to start this week we saw the market backtest the key 4114 weekly pivot yet again before closing right at 4200 again. From a technical perspective, it would be surprising at this point if the market was not able to generate a positive trend out of this price action. From here we target 4300-4325 next before meeting more meaningful resistance. There is a lot of headlines circulating regarding the debt ceiling conversation. As always we will trade the market one day / week at a time, from level to level and setup to setup. Back below 4114-4100 becomes more compelling to the downside. Until then dips continue to favor being bought.

Economic Calendar & Earnings

source: (investing.com)

Notable Earnings: CRWD 0.00%↑ CRM 0.00%↑ AI 0.00%↑ OKTA 0.00%↑ CHWY 0.00%↑ LULU 0.00%↑ AVGO 0.00%↑ LULU 0.00%↑ MDB 0.00%↑

source: earningswhispers.com

Near Term Outlook & Trade Plan

SPX 4218 targets 4250, 4265

SPX 4163-4218 = chop zone

SPX 4163 targets 4148, 4114

Pandas Weekly Watchlist

Our Favorite Trade Setup - SPY over 420.77

Contract: SPY 5/31 422c

Targets: 422.81, 426, 429.64

Stop: 418.70 using 15m candle

Notes: SPY retested the previous high of 420.72 on Friday and closed just below it. If we get a move over Fridays high of 420.77 then I like this setup for continuation towards 422.81 level next. Lots of names had some big moves on Friday so SPY can be a good way to simplify.

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