Stock Market Update. Bullish Santa Rally!

Summary

Steven Lord presents a bullish, chart-based outlook following a strong rally after the U.S. midterm elections. He says a daily-chart head-and-shoulders pattern on the broader market has played out and sees potential for a pre-Christmas rally, provided key support levels hold.

He advises trading price action rather than political headlines. He also emphasizes waiting for confirmation instead of buying solely because a price level is touched.

Trading Levels and Outlook

SPY

• $763: Key opening-price and support level. Lord would look for an upward daily or 30-minute candle above this level before considering calls or shares. A touch alone could be a false breakout.
• $770: Psychological level. If it holds, he sees a possible move toward the October 28 gap at $772.31–$772.36. He says he would cap an initial call-options target near that gap.
• Above $772.36: If the gap holds as support, he sees possible moves toward $777, $780, $790, and $800. A move to $790–$800 before Christmas is possible, but conditional—not guaranteed.
• $745: Potential long-entry level in a severe sell-off. Gaps around November 2 and July 31 are also marked as downside chart references.
• If SPY opens above relevant levels, Lord says he would wait for a retest rather than chase the opening gap.

QQQ

• $700: Main psychological and directional level. Lord is bullish only if QQQ holds above it and wants a 30-minute confirmation candle.
• $704.40: First target, based on an October 23 gap.
• $715.34: Further upside reference, based on an October 29 gap.
• If QQQ falls, $685.28 (the November 3 closing price) and $681.09 (the November 2 gap) are potential areas of interest. Lord says he would become more optimistic around $685, subject to confirmation.
• For options, he prefers expirations at least two weeks out and would not enter a full position immediately.

Tesla (TSLA)

Lord watches $400, $405, $410, $415, and $428–$430 as sequential trading levels. He is not interested in trading TSLA below $400 and prefers to focus around $400 and $415, with potential moves between the listed levels if they hold.

Futures

Lord says the same levels-based approach can be applied to ES and NQ, using SPY and QQQ as references.

Method and Risk Considerations

• Mark prior gaps, repeatedly tested support and resistance, opening prices, and psychological round numbers.
• Wait for a 30-minute confirmation candle; use 15- and 5-minute charts to refine entries.
• Avoid chasing price or entering solely on a level touch. Watch for false breakouts and retests.
• Avoid entering a full options position at once; allow time for the trade to develop.
• Treat the bullish outlook as conditional on support holding. Lord acknowledges that unexpected events could trigger a sharp sell-off.

Assets and Instruments Mentioned

SPY, QQQ, Tesla (TSLA), and ES and NQ futures; call options, put options, shares, and short positions. The video does not discuss bonds, commodities, or crypto.

Disclosures

No explicit “not financial advice” disclaimer appears in the subtitles. The presenter frames the outlook as his own opinion and says he has no “magic bullet.”

Presenter/source: Steven Lord.