Dow 30 Aug 06 to Aug 10 Outlook

Recap
Edged higher in the beginning of the week. Spent 2 days forming a classic spike and ledge top leading to the flush back down to Y-0, support zone mentioned last week. Dow bounced right off the support and zoomed back up to week high on Friday. Closed the week near week high and above Y+1.

Outlook
Abnormal reversal at end of week is a sign of thin volume (no participation). Such rally is not sustainable once the short sellers are exhausted but we have to wait til most of them giving up first.

Hence, going higher next week is likely. Then if Dow collapses back down quickly below B+1, B-0 and B-1 will be in play.