S&P 500 Oct 31 to Nov 04 OutlookBy on 2011 Oct 29 Sat 7:05:27
ES did sold off from the beginning of the week off the 3 pushes up formation. Yet Y-0 acted as support and continue its parabolic path going higher. Closed the week near the high after tagging Y+3 target.
Consolidation is expected.
Out of the 3 indices, Dow has the strongest rally in terms of overshooting the target level and that NQ had the steepest pullback structurally and gained least relative to the previous week high.
ES has tagged its upside target as if it was done with a script. That means the controlling party to the upside is still in control and that means proper pullback is expected on ES this coming week.
The pullback can be shallow and illiquid with afternoon rally popping to higher closes.
Unless we get a good double top or other strong sell setup to push ES lower, B-0 is likely to act as strong support this week.