Recap My question last week was answered the moment NQ gapped up above its Y-0. That killed the chance to go lower and provided a platform for Dow to hold Y-1. Dow tested Y-1 from above and bounced. Shorts were squeezed hard as Dow pushed back above Y-0. Yet there is no fuel to go higher. By Friday after NFP, Dow collapsed back down to Y-1 but this time someone stepped in to stop the drop. Dow squeezed higher yet again. Closed the week above midpoint and Y-0.
Outlook Inside week with midpoints at almost the same price points to breakout mode. Since Dow was in a down trend entering the breakout mode, bears have a slight edge.
Chart pattern of flat bottom expanding triangle is bearish. It is just a variation of the bear flag.
The only way out for bulls is to create a higher low below B-0 and above B-1 to trap enough shorts there to force the market to go higher.
Lawrence's Comment
Recap
Spike bottom happened before midweek yet failed to push above Y-0. Closed the week below Y-1 and midpoint.
Outlook
The first try to find a bottom failed. The week turned into ...
Lawrence's Comment
Recap
Bounced all the way back to Y+3 exactly as expected. Closed the week above Y+3.
Outlook
As long as B-1 to B-0 acts as support a short term bottom is ...
Dow 30 Sep 09 to Sep 13 Outlook
Lawrence’s Comment
My question last week was answered the moment NQ gapped up above its Y-0. That killed the chance to go lower and provided a platform for Dow to hold Y-1. Dow tested Y-1 from above and bounced. Shorts were squeezed hard as Dow pushed back above Y-0. Yet there is no fuel to go higher. By Friday after NFP, Dow collapsed back down to Y-1 but this time someone stepped in to stop the drop. Dow squeezed higher yet again. Closed the week above midpoint and Y-0.
Outlook
Inside week with midpoints at almost the same price points to breakout mode. Since Dow was in a down trend entering the breakout mode, bears have a slight edge.
Chart pattern of flat bottom expanding triangle is bearish. It is just a variation of the bear flag.
The only way out for bulls is to create a higher low below B-0 and above B-1 to trap enough shorts there to force the market to go higher.
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