Recap Tricky start. Monday breached Y-1 and looked as if it cannot hold above Y-1. Then a gap and go run to search and destroy all the shorts from the past several weeks. Rally finally stopped at the gap above and stalled back down to Y-0. Notice how that turned into support and forced Dow to go back up to retest the gap. Closed the week at week high.
Outlook Gap fill above likely as long as good news are fed out from Europe. Y+1 to B+2 should should not be a big problem. B+1 turning into support is important for bullish scenario to continue.
Lawrence's Comment
Recap
Short bias from last week played out well until Y-2 was tagged and that the huge gap from beginning of March was rejected. ES zoomed back up from below ...
Dow 30 Jun 11 to Jun 15 Outlook
Lawrence’s Comment
Tricky start. Monday breached Y-1 and looked as if it cannot hold above Y-1. Then a gap and go run to search and destroy all the shorts from the past several weeks. Rally finally stopped at the gap above and stalled back down to Y-0. Notice how that turned into support and forced Dow to go back up to retest the gap. Closed the week at week high.
Outlook
Gap fill above likely as long as good news are fed out from Europe. Y+1 to B+2 should should not be a big problem. B+1 turning into support is important for bullish scenario to continue.
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