Recap I thought the backfill back down to Y-1 was going to be choppy. Instead, we got this clean directional slide all the way down. Cleared Y-1 easily and then took ES down to almost Y-2 at 150% week expansion before support was found. Closed the week below Y-1 and near week low.
Outlook Outside down week with close below Y-1 is bearish. Very directional week with range expansion, however, points to consolidation move the very next week. So more downside is expected but it could be just a tad lower.
Once a bottom is found, ES can drift back up with low volume to B-0 easily.
S&P 500 Dec 16 to Dec 20 Outlook
Lawrence’s Comment
I thought the backfill back down to Y-1 was going to be choppy. Instead, we got this clean directional slide all the way down. Cleared Y-1 easily and then took ES down to almost Y-2 at 150% week expansion before support was found. Closed the week below Y-1 and near week low.
Outlook
Outside down week with close below Y-1 is bearish. Very directional week with range expansion, however, points to consolidation move the very next week. So more downside is expected but it could be just a tad lower.
Once a bottom is found, ES can drift back up with low volume to B-0 easily.
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