Trading Edges That Last
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Lawrence's Comment Recap My favorite pair behaved nicely last week. Sold off as expected and dropped down to almost Y-3 target before it staged the bounce. Closed the week above midpoint and ...READ MOREFor more information about this report please refer to the Market Bias Informant pageREAD MORELawrence's Comment Recap Bounced back up in tight range around Y-1 is normal after the sudden wide range reversal. Closed the week above Y-1 and midpoint. Outlook As long as Y-1 / ...READ MOREIntraday Cycle Projection (DIA) 2014-04-24Real-time Commentaries 2014-8-5GBPUSD Aug 05 to Aug 09 Outlook3DP Odds Table (YM) 2012-11-30Precog Vision – US Indices 2017-7-27USDJPY May 09 to May 13 OutlookReal-time Commentaries 2013-2-6Weekly Cycle Projection (YM) 2014-12-08Hot n Cold (DJIA) 2021-12-3Hot n Cold (DIA) 2015-7-17
As Featured In
Dow 30 Feb 18 to Feb 22 Outlook
Lawrence’s Comment
Option expiration last week. False breakout on first push against Y+1, gave us a go for the Y-0 play. Pullback to Y-0 overnight midweek and bounced back since. Retest of Y+1 later in the week resulted in strong selloff again. This time it dropped below Y-0 but still manage to bounce off fiercely. Closed the week above midpoint and below Y+1.
Outlook
As mentioned last week as long as Dow is trapped in the Y+1 / Y-1 range, there is no direction. So last week joyrides to Y+1 and Y-0 following the crowd was easy. The op ex Friday close, however, was very disturbing as we have not have such wild move on op ex for a long time.
In a way, Dow experienced continuous attempts to push it lower for weeks now yet the price level resolved higher. It is a sign of strength. In another words, Dow has neutralized the overbought condition from late January by going nuts with 2 ways 150+ points swings around 13900.
At this point it is in breakout mode on weekly timeframe. Daily chart signals will have no meaning once the breakout in weekly happens. Be aware of that.
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