Recap Dow tried hard to stay above Y+1 and its failure to do so led to a pullback capped by 50% previous week range. Strong rally off the support brought Dow back up to week high and above. Closed the week above Y+1 and near week high.
Outlook Interesting option expiration price actions from last week points to the potential of a sharp pullback is in the making. Another FBO against B+1 will easily led to a quick selloff back down to B-1 and below.
Dow 30 Oct 19 to Oct 23 Outlook
Lawrence’s Comment
Dow tried hard to stay above Y+1 and its failure to do so led to a pullback capped by 50% previous week range. Strong rally off the support brought Dow back up to week high and above. Closed the week above Y+1 and near week high.
Outlook
Interesting option expiration price actions from last week points to the potential of a sharp pullback is in the making. Another FBO against B+1 will easily led to a quick selloff back down to B-1 and below.
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