Recap As stated last week, there would be limited potential to stretch further as that has proven correct. Closed the week near Y-0.
Outlook Last week was not weak enough to be considered a reversal week.
As long as Y-0 down to B-2 can form a bottom, B+1 will be retested although that could take more than a week.
The catch (or the weaknesses of the bulls) is that there is a huge 100 point area right underneath B-1 that is made up of 2 gaps. If that zone is zoomed thru (e.g. a down gap) then a quick melt down to B-3 and Y-1 area is likely.
Lawrence's Comment
Recap
The down channel was broken to the downside, resulting in a flush. Y-2 tagged and bounced off. Closed the week below Y-1 and B-0.
Outlook
3rd week printing lower ...
Lawrence's Comment
Recap
The bullish scenario did not materialize. Y-1 turned into resistance, and NQ simply fall straight down to first target of Y-2 and then collapse down to 100% absolute ...
Dow 30 Feb 13 to Feb 17 Outlook
Lawrence’s Comment
As stated last week, there would be limited potential to stretch further as that has proven correct. Closed the week near Y-0.
Outlook
Last week was not weak enough to be considered a reversal week.
As long as Y-0 down to B-2 can form a bottom, B+1 will be retested although that could take more than a week.
The catch (or the weaknesses of the bulls) is that there is a huge 100 point area right underneath B-1 that is made up of 2 gaps. If that zone is zoomed thru (e.g. a down gap) then a quick melt down to B-3 and Y-1 area is likely.
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