Recap As expected, a bottom was formed early in the week, gave us a run back up to Y-0 and stalled. This can be puzzling for many daytraders but it should not be a surprise for long term readers of my weekly commentaries. Closed the week above midpoint and below Y-0.
Outlook Price pattern suggested an important top is already in place and that a swing trend going down is also in place. As long as B+1 is not breached, a run back down to B-1 and B-2 is in play.
The rare case scenario is that ES somehow find support around B-0 and zoom through B+1. If that happens, a massive short squeeze will take ES upto B+3 easily. Not something normal but it can happen.
Lawrence's Comment
Recap
Seasonal year end updrift bias did not help the indices one bit. Fiscal cliff became an excuse to dump the indices to new low. Closed the week ...
S&P 500 Jul 01 to Jul 05 Outlook
Lawrence’s Comment
As expected, a bottom was formed early in the week, gave us a run back up to Y-0 and stalled. This can be puzzling for many daytraders but it should not be a surprise for long term readers of my weekly commentaries. Closed the week above midpoint and below Y-0.
Outlook
Price pattern suggested an important top is already in place and that a swing trend going down is also in place. As long as B+1 is not breached, a run back down to B-1 and B-2 is in play.
The rare case scenario is that ES somehow find support around B-0 and zoom through B+1. If that happens, a massive short squeeze will take ES upto B+3 easily. Not something normal but it can happen.
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