Dow 30 Oct 20 to Oct 24 Outlook

Recap
The expected bearish scenario unfolded. Dow failed to hold Y-1 and then dropped in a waterfall pattern clearing Y-2 and Y-3 in 1 go. The drop unleashed some panic selling but option expiration saved the week. Closed below Y-1 and above midpoint.

Outlook
Island reversals do not work well in general. Dow will have to somehow take care of the gap below to prove its strength before it can go higher. Y-1 / B-1 very strong resistance.

Given the current volatility level, it will not be a suprise that Dow will drop all the way back down to Y-3 / B-1 zone before deciding what to do next.