Recap No test of either extreme in the beginning of the week, so the consolidation play of drifting around Y-0 kicked in. Then Fed chair Mrs Yellen changed the game. Dow zoomed to Y+1 and rejected on first test. Dow was thrown back down to week mid but holding up fine. Closed the week near Y+1 and above midpoint.
Outlook As long as B-0 holds, new high is expected.
If we get a reversal from Y+1 (not B+1) breaking below B-0, it is likely we will see B-1 and B-2 before B+1 will be retested again.
Lawrence's Comment
Recap
Comparing to S&P, Dow dropped more significantly and displayed weaker price action all week. Of course, we now know JPM was the reason.
Outlook
Similar to S&P, Dow ...
Dow 30 May 12 to May 16 Outlook
Lawrence’s Comment
No test of either extreme in the beginning of the week, so the consolidation play of drifting around Y-0 kicked in. Then Fed chair Mrs Yellen changed the game. Dow zoomed to Y+1 and rejected on first test. Dow was thrown back down to week mid but holding up fine. Closed the week near Y+1 and above midpoint.
Outlook
As long as B-0 holds, new high is expected.
If we get a reversal from Y+1 (not B+1) breaking below B-0, it is likely we will see B-1 and B-2 before B+1 will be retested again.
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