Sorry, I meant 3250, not 3350. If for the week we close above 3250, my outlook would change (reverse) to targets above, so S&P higher.
Why 2300?
Hard to explain without making this post really long, but I'll summarize.
1 - Looking at Regular trading hours only (RTH), we have several gaps in price below (un-auctioned areas). Algos (hedge funds, institutions, etc) will not leave these areas uncontested. The auction process is all about price discovery, these areas (gaps) have not been touched, they need to be revisited before price and volume can build higher. Not because I say so, but there is data that shows this.
2 - Along with the gaps, we have naked volume points of control below. If I recall, a total of about 9-10 of them. Like the gaps above, algos will make sure that these are closed. Again, not because I say so, there is a specific reason for it. Google Naked VPOC.
Together, between the gaps and the naked VPOCS, you have approximately a dozen uncontested areas below. Historically, that is too many. We had about the same amount leading up to the end of 2019. Every single one of them was revisited and taken out almost to the tick which brought us just below 2200 in March.
