Being wrong several times last week, I’ve realized, that the best trading style for me is to analyze all the charts in advance, pick key level areas and stick to the plan. If price reverses and goes the opposite – just change the plan!

The only risk here is sideways price action, a biggest killer for all profits. You may not lose it all in one trade, but you surely will bleed to deaf, so need to look out for this one, or even stop trading.

So, here are my thoughts for the next month:

Despite all the negativity, the market was able to break above key resistance areas and go higher. As you can see the main engines of this rise were tech stocks. NDX was able to break out from ascending triangle, next resistance area is 1300-1310 (~880 in SPX)

Even though stocks are in overbought condition right now, the last push to 1290-1300 is possible. After that, a retrace to 1230-1240, which makes it a great buying area with a possible return of ~150 points.

The same thing is with SPX – a little rise at the beginning, then a retrace to the sweet buying area. Will be good for at least 100 points.

NB! This buying areas are valid in case we get another up day monday/tuesday. This is basically what I am looking for – a little upside action at the beginning of the week, then a pullback and new upside action on expiration week. Remember though, if SPX trades below 820 and NDX below 1170 – all bets are off.