Recap Dow failed to hold above 13450, gave way to a flush to Y-1. Cleared Y-1 easily, pointing to Y-2 as the target. After tagging Y-2, Dow bounced back up slightly. Closed the week near Y-2.
Outlook A huge double top formation is now in place and the neckline is 13300. If that turns into resistance Dow will likely melt down to B-2 area, near 13000 before finding any support.
If Dow can close above the neckline on daily basis, It can squeeze the shorts leading to a quick pop back up to B-0.
Lawrence's Comment
Recap
Y-0 acting as support, rallied to Y+1 as expected. Without any significant selloff formation pulled back to slightly higher than Y-0 and took off again, this implied ...
Dow 30 Oct 15 to Oct 19 Outlook
Lawrence’s Comment
Dow failed to hold above 13450, gave way to a flush to Y-1. Cleared Y-1 easily, pointing to Y-2 as the target. After tagging Y-2, Dow bounced back up slightly. Closed the week near Y-2.
Outlook
A huge double top formation is now in place and the neckline is 13300. If that turns into resistance Dow will likely melt down to B-2 area, near 13000 before finding any support.
If Dow can close above the neckline on daily basis, It can squeeze the shorts leading to a quick pop back up to B-0.
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