S&P 500 Mar 07 to Mar 11 Outlook
By News Robot
Lawrence’s Comment
Recap
Feb close established above Y-0. Sold off after failing to hold above Feb close and tagged B-0 quickly. Y-0 acted as resistance pointing to a test of Y-1 but a news shock invalidated the setup (coincidence?) and forced for a retest of week high as shorts were squeezed. Failed to hold above Feb close again and slided back down to fill the gap below. Closed the week above midpoint.
Feb close established above Y-0. Sold off after failing to hold above Feb close and tagged B-0 quickly. Y-0 acted as resistance pointing to a test of Y-1 but a news shock invalidated the setup (coincidence?) and forced for a retest of week high as shorts were squeezed. Failed to hold above Feb close again and slided back down to fill the gap below. Closed the week above midpoint.
Outlook
It has been many weeks that ES has closed above its midpoint. The last 2 weeks have shown a struggle to stay above that.
A retest of B+1 is likely and if that is taken out, gap fill above next.
A less likely scenario but definitely more interesting, is that if Feb close acts as resistance leading to a lower high selloff breaking B-0, that will lead to a quick drop towards B-1 and potentially B-2.
Comments
1. Last week was an inside week. Prev week’s (week ending in Feb) high and/or low possible magnets.
2. I am struggling with understanding the new lingo. B-0, Y-1, etc. Is there a legend or guide to the lingo?
The labels are B-0 is blue-0 on the chart, Y-1 is Yellow-1 on the chart.
The explanation is there under the Notation tab. =)
I am interested in the low of week prior to last week (Y-1 on the chart) should we get a clean break right off the bat on Monday taking out 1310.