Dow 30 Sep 16 to Sep 20 Outlook

Recap
Bear flag upside breakout is a very powerful formation. It is rare thus most people reacted the wrong way in handling the situation. That’s exactly what we’ve got last week with Dow. The breakout gave us a target of Y+3 and above. All it took was 2 days to get there. Dow matched up to almost Y+4 before it found resistance. Consolidated above Y+3 since. Closed the week above Y+3 and near week high.

Outlook
The consolidation at the end of the week at low volume was due to the almost totally unexpected outcome from the Syria crisis. The crisis is still in development. Reaction to the agreement so far made during the weekend will be very interesting.

Technical setup points to pullback to at least Y+2 / B-0 before Dow can find any support. And that is not a strong support zone either as the other indices do not support this rally at all.