Recap Similar to Dow, ES just refused to go lower and continue its pattern of holding the upper range of previous week and pushed higher. When it fails to do so, then we get sudden gap up from overnight action to stop the drop. Closed the week near week high and Y+2.
Outlook Last week was the NFP reporting week which has a signature bias that can be exploited. ES did what it was supposed to do and tagged the upside target as expected. So it is not so much a surprise.
Historically there should be some weaknesses right after a strong NFP Friday. Would that turn into a serious pullback or correction? I do not have enough evidence that it is time yet.
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S&P 500 Feb 04 to Feb 08 Outlook
Lawrence’s Comment
Similar to Dow, ES just refused to go lower and continue its pattern of holding the upper range of previous week and pushed higher. When it fails to do so, then we get sudden gap up from overnight action to stop the drop. Closed the week near week high and Y+2.
Outlook
Last week was the NFP reporting week which has a signature bias that can be exploited. ES did what it was supposed to do and tagged the upside target as expected. So it is not so much a surprise.
Historically there should be some weaknesses right after a strong NFP Friday. Would that turn into a serious pullback or correction? I do not have enough evidence that it is time yet.
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