Recap Unlike NQ, Dow refused to even consolidate below Y+1. Instead it popped higher and sit above Y+1. Eventually that led to the upside breakout and doubled the range of the week and paused. Closed the week above Y+1 and midpoint.
Outlook The thin upchannel was broken by end of the week yet there was no negative reaction. This could be caused by option expiration.
Once B-1 is breached, I am looking for at least a drop to below B-3 to fill the gap below.
As long as it holds, it is difficult to tell if Dow still has enough fuel for another push higher.
Lawrence's Comment
Recap
Y-0 support gave us up drift to B+2. Reaction to FOMC meeting swinged NQ back down to Y-0. Closed the week near Y-0 and below midpoint.
Outlook
B-0 / ...
Dow 30 Mar 18 to Mar 22 Outlook
Lawrence’s Comment
Unlike NQ, Dow refused to even consolidate below Y+1. Instead it popped higher and sit above Y+1. Eventually that led to the upside breakout and doubled the range of the week and paused. Closed the week above Y+1 and midpoint.
Outlook
The thin upchannel was broken by end of the week yet there was no negative reaction. This could be caused by option expiration.
Once B-1 is breached, I am looking for at least a drop to below B-3 to fill the gap below.
As long as it holds, it is difficult to tell if Dow still has enough fuel for another push higher.
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