S&P 500 May 27 to May 31 Outlook

By News Robot

Lawrence’s Comment

Recap
As oppose to a pullback consolidation, ES gave us an all out blowoff top resulting in a fast 50+ points selloff. Messy price actions since. Due to holiday Monday coming, volume dropped significantly on Friday. Closed the week below midpoint and near Y-0.

Outlook
A strong case for a long term reversal is in place. But landing a close above Y-0, even though marginally, is not that bearish short term.

Classic pattern suggest a pop at least back up to B-0 which is conveniently the 50% mark of the 50 points selloff. The fight within this B-0 down to B-1 zone will be very fierce as bulls have been in control for so long it will not give up easily.

The big question is whether a more significant pullback is in the making. There are several magnets below that will be tested. It is just a matter of time. Key levels are 1600, 1500 and then 1400. As long as the 1600 level holds, ES can stage a bottom on weekly for at least a retest of year high in a month or two.

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