Recap Gap zone tested and failed to fill the gap. Price breakdown to Y-2. Bounced back to Y-1. Then 100% absolute range expansion to the downside stopped the drop. All measured and working as prescribed in STOPD. Last part of the week spent drifting below B-0 midpoint of the week.
Outlook A rally taking out B-0 quickly in the beginning of the week means B+1 is likely target.
A retest of B-1, however is the more likely scenario. Breaking B-1 points to B-2 as the next lower price level that has a 50/50 chance to stop this down leg.
Lawrence's Comment
Recap
As explained last week that option expiration weeks operate with a different set of rules. Dow could not clear the upper boundary as expected and suddenly dropped back down ...
Nasdaq 100 Mar 21 to Mar 25 Outlook
Lawrence’s Comment
Gap zone tested and failed to fill the gap. Price breakdown to Y-2. Bounced back to Y-1. Then 100% absolute range expansion to the downside stopped the drop. All measured and working as prescribed in STOPD. Last part of the week spent drifting below B-0 midpoint of the week.
Outlook
A rally taking out B-0 quickly in the beginning of the week means B+1 is likely target.
A retest of B-1, however is the more likely scenario. Breaking B-1 points to B-2 as the next lower price level that has a 50/50 chance to stop this down leg.
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