Recap 3rd week in a row the major US indices are repeating what happened last year. The rising wedge broken early in the week and turning into sideway action around Y+1 which is usually bullish as the trend entering the consolidation was up. Then another gap up and go leading to all out short squeeze to above Y+2. Closed the week above Y+2 and near week high.
Outlook 100% absolute range expansion capped the up swing so far. As long as B+1 acts as resistance, good chance that Y+1 will be retested sometime this week.
I will not be surprised that all efforts will be made, including use of newshocks, rumors, etc. to pop Dow higher should we get a day that drops it by 100 points or more.
Lawrence's Comment
Recap
Tagged Y+2 as expected. Better yet, made a 1-2-3 sell off that zone implying Y+1 and Y-0 was in play and both were tagged quickly thus opening the ...
Dow 30 Jan 21 to Jan 25 Outlook
Lawrence’s Comment
3rd week in a row the major US indices are repeating what happened last year. The rising wedge broken early in the week and turning into sideway action around Y+1 which is usually bullish as the trend entering the consolidation was up. Then another gap up and go leading to all out short squeeze to above Y+2. Closed the week above Y+2 and near week high.
Outlook
100% absolute range expansion capped the up swing so far. As long as B+1 acts as resistance, good chance that Y+1 will be retested sometime this week.
I will not be surprised that all efforts will be made, including use of newshocks, rumors, etc. to pop Dow higher should we get a day that drops it by 100 points or more.
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