Recap My question last week was answered the moment NQ gapped up above its Y-0. That killed the chance to go lower and provided a platform for Dow to hold Y-1. Dow tested Y-1 from above and bounced. Shorts were squeezed hard as Dow pushed back above Y-0. Yet there is no fuel to go higher. By Friday after NFP, Dow collapsed back down to Y-1 but this time someone stepped in to stop the drop. Dow squeezed higher yet again. Closed the week above midpoint and Y-0.
Outlook Inside week with midpoints at almost the same price points to breakout mode. Since Dow was in a down trend entering the breakout mode, bears have a slight edge.
Chart pattern of flat bottom expanding triangle is bearish. It is just a variation of the bear flag.
The only way out for bulls is to create a higher low below B-0 and above B-1 to trap enough shorts there to force the market to go higher.
Dow 30 Sep 09 to Sep 13 Outlook
Lawrence’s Comment
My question last week was answered the moment NQ gapped up above its Y-0. That killed the chance to go lower and provided a platform for Dow to hold Y-1. Dow tested Y-1 from above and bounced. Shorts were squeezed hard as Dow pushed back above Y-0. Yet there is no fuel to go higher. By Friday after NFP, Dow collapsed back down to Y-1 but this time someone stepped in to stop the drop. Dow squeezed higher yet again. Closed the week above midpoint and Y-0.
Outlook
Inside week with midpoints at almost the same price points to breakout mode. Since Dow was in a down trend entering the breakout mode, bears have a slight edge.
Chart pattern of flat bottom expanding triangle is bearish. It is just a variation of the bear flag.
The only way out for bulls is to create a higher low below B-0 and above B-1 to trap enough shorts there to force the market to go higher.
Share