Recap As expected, rallied most of the week once a low was established on Monday. 200% absolute range expansion completed and stalled from there. Closed the week above Y+1
Outlook Difficult situation here. All eyes are now on US debt ceiling b.s. to be resolved. The pressure on USD across the majors last week clearly provided fuel to drive the US stock market higher.
If there is a deal, the first shock is obviously selling the news.
The details of the deal, however, will be more important after the first 20 minutes is over. If the deal is more of the same, USD will continue its self destruction path and US stocks will go higher. In this situation, we get Y+3 and Y+4 by August.
Wild swings back down to B-0 or even Y-1 is not bearish if it is driven by the 1st shock from the news. However, if B-0 acts as resistance after the shock, we will be facing a nasty sell off down to at least Y-4 to B-2 area.
Lawrence's Comment
Recap
ES flushed down to the downside target area and bounced quickly back up to above Y-1. That staged the rally back up to challenge the open gap above. Closed ...
Lawrence's Comment
Recap
As expected, a bottom was formed early in the week, gave us a run back up to Y-0 and stalled. This can be puzzling for many daytraders but it ...
Dow 30 Jul 25 to Jul 29 Outlook
Lawrence’s Comment
As expected, rallied most of the week once a low was established on Monday. 200% absolute range expansion completed and stalled from there. Closed the week above Y+1
Outlook
Difficult situation here. All eyes are now on US debt ceiling b.s. to be resolved. The pressure on USD across the majors last week clearly provided fuel to drive the US stock market higher.
If there is a deal, the first shock is obviously selling the news.
The details of the deal, however, will be more important after the first 20 minutes is over. If the deal is more of the same, USD will continue its self destruction path and US stocks will go higher. In this situation, we get Y+3 and Y+4 by August.
Wild swings back down to B-0 or even Y-1 is not bearish if it is driven by the 1st shock from the news. However, if B-0 acts as resistance after the shock, we will be facing a nasty sell off down to at least Y-4 to B-2 area.
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