Recap Perfect breakdown from the beginning of the week gave us a very volatile move down to my target from last week. Not an easy ride down at all. Closed the week below Y-1 and midpoint.
Outlook My warning last week that messy price action should be expected pretty much summed up what happened. More of the same this week will not be a surprise.
Potential complete reversal of the selloff is possible this week if Dow can hold Y-2 and stage a 1-2-3 buy to clear B-0 in 1 go. I am not bullish long term but the chart pattern suggested the possibility so beware of the setup.
Normal price action says that Dow should stay below B-0 for a retest of B-1 and continuation selloff down to B-2.
Lawrence's Comment
Recap
The weakest out of the 3 major indices, still rallied all its way until 200% absolute range expansion was completed. Closed the week at Y+2.
Outlook
The failure to take ...
Dow 30 Aug 12 to Aug 16 Outlook
Lawrence’s Comment
Perfect breakdown from the beginning of the week gave us a very volatile move down to my target from last week. Not an easy ride down at all. Closed the week below Y-1 and midpoint.
Outlook
My warning last week that messy price action should be expected pretty much summed up what happened. More of the same this week will not be a surprise.
Potential complete reversal of the selloff is possible this week if Dow can hold Y-2 and stage a 1-2-3 buy to clear B-0 in 1 go. I am not bullish long term but the chart pattern suggested the possibility so beware of the setup.
Normal price action says that Dow should stay below B-0 for a retest of B-1 and continuation selloff down to B-2.
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