Recap A dramatic week. Failed to push above Y-0 and flushed through Y-1 quickly. Y-2 acted as support temporarily and then flushed down to new low above Y-3. Multiple news shock induced massive short squeeze. Closed the week above Y-1 and previous week close.
Outlook Upside 1360 gap fill still in play. A push towards B+2 is possible if B-0 can act as support.
So far this rally is again pure short squeeze. It is very similar to the rally from late June. The moment new bad news unfolds from Europe again, everything will turn south quickly.
Lawrence's Comment
Recap
Dow break above Y+1 early in the week points to the potential to tag Y+2 later. It was done with another huge gap to the upside. Closed the week ...
S&P 500 Jul 16 to Jul 20 Outlook
Lawrence’s Comment
A dramatic week. Failed to push above Y-0 and flushed through Y-1 quickly. Y-2 acted as support temporarily and then flushed down to new low above Y-3. Multiple news shock induced massive short squeeze. Closed the week above Y-1 and previous week close.
Outlook
Upside 1360 gap fill still in play. A push towards B+2 is possible if B-0 can act as support.
So far this rally is again pure short squeeze. It is very similar to the rally from late June. The moment new bad news unfolds from Europe again, everything will turn south quickly.
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