Dow 30 May 11 to May 15 Outlook
Dow gapped up right into the strong resistance zone mentioned last week. Selling just pile on and sent Dow back down to Y-1 as expected. The reaction there was decisively bullish, sending Dow straight back up to Y-0 and opened the door to Y+1. Dow then gapped to Y+1 on NFP report and stayed there. Closed the week above Y+1 and near week high.
Outside reversal week with close above Y+1 although quite marginal. This is bullish, the momentum to the upside is now enough to carry Dow higher to challenge the year high above. Dow 18000 round number is now very strong support, a pullback to there to absorb the run is possible but not necessary.