Recap Another not so surprising attack against the bears last week. As mentioned last week, the gaps above were inviting Dow to revisit them quickly. The surprise was that it was done with a huge gap up above them all to start the week. As Y+1 acted as support, Dow moved to Y+2 to complete the upside objective. A steep drop from Y+2 back down to fill the open gaps below since. Closed the week above Y+1 and midpoint.
Outlook Consolidation around the open of the week above Y+1 is bullish. It shows that Y+2 / B+1 is likely to be retested early next week. Reaction there will tell us if last week was a blow-off top.
Lawrence's Comment
Recap
No breakout so consolidation it is. Going nowhere whole week.
Outlook
Breakout mode. Waiting for a breakout (preferred to the upside) above B+1 or B-1.
Lawrence's Comment
Recap
Unfolded exactly as mentioned last week. Consolidation within the prescribed range. A breakout of Y+1 leads to doubling the week's range.
Outlook
As long as B-0 acts as support, Y+2 ...
Dow 30 Jul 21 to Jul 25 Outlook
Lawrence’s Comment
Another not so surprising attack against the bears last week. As mentioned last week, the gaps above were inviting Dow to revisit them quickly. The surprise was that it was done with a huge gap up above them all to start the week. As Y+1 acted as support, Dow moved to Y+2 to complete the upside objective. A steep drop from Y+2 back down to fill the open gaps below since. Closed the week above Y+1 and midpoint.
Outlook
Consolidation around the open of the week above Y+1 is bullish. It shows that Y+2 / B+1 is likely to be retested early next week. Reaction there will tell us if last week was a blow-off top.
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