Dow 30 Apr 22 to Apr 26 Outlook

Recap
Major selling actions witnessed last week. The rally of the week prior to last one was erased completely. Closed the week above Y-1 and below midpoint.

Outlook
As oppose to closing below Y-1 to confirm the failure of the blowoff rally, we only got a selloff back down to March close. That means the bulls have not givne up the fight to go higher. Normal market condition B-0 should act as resistance where Dow will continue to go lower as long as that is not breached.

The problem with that scenario is that if Dow is strong enough to challenge B-0, PPT will ensure that it does not stop there as short sellers are very predictable which price level they are going to act.

Hence, for further selling, Dow has to drop quickly down to B-2 first or this selloff may just bottom out right here.