S&P 500 Dec 20th to Dec 24th Outlook
Recap of Last Week
Stalled from weekly open range established on Monday, failed to hold prior week high on 2nd try, leads to a quick drop towards prior week midpoint (yellow zone). Bounced from there and closed within Monday’s range.
Next Week Outlook
A bear trap is now in place between yellow zone and red zone. Should ES drop into this area and bounce off quickly, the year end target of 1260 area will likely be tagged quickly. It is very similar to the bull trap as seen in GBPUSD last week (see the weekly outlook here). If the red zone (previous week bottom + prior week midpoint + approx. Nov. month high) failed to support the market there, a short term top is in, and we can look for selloff back down to the 7th unfilled gap below early next year.