BlockStoxx Key Market Levels For August 2024

| Here is my portfolio update and some key market levels for both downside risk and upside potential.

This week has been tumultuous at best. Monday a 3% drop almost overnight. I was hedged, so my portfolio made $10k. It got me thinking about where could the market go now — up or down. So, this article will be about where I think the market could go and why.

I will talk about the downside first, then I’ll talk about upside after that.

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Downside Risk

Source: TradingView. $SPX. $5,000 is the proverbial “bottom”. $5,200 is key support, and $5,400 is key resistance. A break of $5,400 puts the market as bullish.

I think it would take a market crash or black swan event to bring the market down to $5,000 SPX. But, I will say there is a huge open interest of options down there. It could very well be part of spreads. For example, if portfolio managers…