Dow 30 Apr 29 to May 03 Outlook

Recap
As expected, a bounce to Y-0 could not be avoided and that it would not stop the bounce also materialized. The interesting thing is that it was done through another large gap up to clear the Y-0 resistance, yet the gap was closed not because of a normal selloff, but a false report that White House was bombed. Closed the week above Y-0 and midpoint.

Outlook
No long term direction has established yet. Volatility on weekly basis, it is 2nd week in a row with tighten range. Compression means eventually the original boundary will be tested. As Y-1 was tested and held, it means the year high could be next.

Notice the remaining gap above and the original open gap below (if we ignore the 2-min crash) are about equal distance from close of this week. This is the equalibrium zone. Once Dow can move above B+1, a zoom to fill the gap above will happen. The opposite is true too – once Dow breaks B-0, it will have no choice but to flush down to fill the gap below and likely B-1 too.