Trading Edges That Last
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S&P 500 Nov 26 to Nov 30 Outlook
Lawrence’s Comment
Similar to Dow and NQ, ES shot up whole week last week and recovered all the ground it lost over the past several weeks. Closed the week near week high and right below Y+2 / open gap from early November.
Outlook
Back to daily and weekly level resistance zone. Clearing this area will allow ES to challenge year high quickly as it enters the seasonal bullish period. The problem with the setup, however, is that it is driven up without any volume, hence can induce significant size selling right here as trapped long finally get a chance to bail out.
Expecting a sharp selloff back down to B-1 and probably lower. I am not looking for a long term selloff continuation. I am talking about a very steep shake out before ES drifting higher during the December holiday season.
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