Recap ES breakout to the upside and tagged the minimal target of Y+2. Reversed from there and failed to hold Y+1 gave us Y-0. ES did not just tag Y-0. It flushed down to Y-1 in 1 go. That confirmed the FBO on weekly to the upside and staged Y-3 as target. ES tagged Y-3 and accumulation was detected. Closed the week above Y-1 and midpoint.
Outlook Extreme swings after weeks of tight range and pinball movement between close range targets is pretty normal. ES is more bearish than Dow and a retest of Y-2 is likely if ES fails to hold above B-0 / Y-1.
Notice that on weekly chart, this drop was simply a mild pullback that is necessary if the market wants to go higher. In another words, it looks and feels like the normal shake out move in a strong bull run. Hence it is difficult to be very bearish at this point.
I mentioned the week prior to last week during real-time chat that I was looking for a 30 point pullback. What I did not anticipated was that the move could be done in 2 days. I am waiting for the market to give me clues this week to figure out what to do from March to May.
S&P 500 Feb 25 to Mar 01 Outlook
Lawrence’s Comment
ES breakout to the upside and tagged the minimal target of Y+2. Reversed from there and failed to hold Y+1 gave us Y-0. ES did not just tag Y-0. It flushed down to Y-1 in 1 go. That confirmed the FBO on weekly to the upside and staged Y-3 as target. ES tagged Y-3 and accumulation was detected. Closed the week above Y-1 and midpoint.
Outlook
Extreme swings after weeks of tight range and pinball movement between close range targets is pretty normal. ES is more bearish than Dow and a retest of Y-2 is likely if ES fails to hold above B-0 / Y-1.
Notice that on weekly chart, this drop was simply a mild pullback that is necessary if the market wants to go higher. In another words, it looks and feels like the normal shake out move in a strong bull run. Hence it is difficult to be very bearish at this point.
I mentioned the week prior to last week during real-time chat that I was looking for a 30 point pullback. What I did not anticipated was that the move could be done in 2 days. I am waiting for the market to give me clues this week to figure out what to do from March to May.
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