S&P 500 Oct 13 to Oct 17 Outlook

Recap
As indicated last week the end of week rally from the week before was not a sign of reversal. That trapped a lot of longs. ES gapped higher at the start of the week and dropped lower since. Y-1 minimal target tagged and a powerful sequeeze followed. Yet, it failed to produce any support to ES which led to another drop lower to clear the Y-1 support. Closed the week below Y-1 and at week low.

Outlook
2nd rejection of Y-0 with directional selling below Y-1 implies Y-1 to B-0 is now very strong resistance. Until that is cleared, given both daily and weekly trend is down, long trade should not be considered until significant support zone is reached. The nearest weekly support is below 1870 at B-2.