Dow 30 Apr 16 to Apr 20 Outlook

Recap
Gap below previous week low and started a mini crash to not just our closest 12800 (Y-2) target. It also tagged Y-3 quickly. That kind of moves usually results in a bounce. We got the bounce and to everyone’s surprise that it went back up within 2 days to challenge the week high but failed to go much higher. The shocks on Friday killed the up swing. Closed the week at midpoint near Y-2.

Outlook
Gaps everywhere – 2 above and 2 below. All about similar distance from the close of the week. That often induces very wild intraday swings (i.e. opportunities for daytraders).

A break below B-0 points to quick fill of the gaps below and a test of B-1. If that holds, a major double bottom can be formed with its target, not surprisingly, the year high formed not too long ago.