Recap Tricky week indeed. Dow opened above Y+1 invalidated the normal pullback scenario. Y+1 acting as support since and eventually led to end of week rally to close at month high. Closed the week above Y+1 and near B+1.
Outlook “Revenge reversal” is a common pattern for Dow. It usually results in 100% expansion of the initial spike reversal move. Since the spike move was made approximately from 16310 to 16510, the upside target should be 16710 area.
From here a consolidation or sharp pullback is likely. B-1 and B-2 are in play and should be tagged quickly this week or next.
I am going to present the first example trading model in this series that exploits the characteristics of the NYSE Tick Index. Most people focus on the intraday behaviour of ...
Dow 30 Jun 02 to Jun 06 Outlook
Lawrence’s Comment
Tricky week indeed. Dow opened above Y+1 invalidated the normal pullback scenario. Y+1 acting as support since and eventually led to end of week rally to close at month high. Closed the week above Y+1 and near B+1.
Outlook
“Revenge reversal” is a common pattern for Dow. It usually results in 100% expansion of the initial spike reversal move. Since the spike move was made approximately from 16310 to 16510, the upside target should be 16710 area.
From here a consolidation or sharp pullback is likely. B-1 and B-2 are in play and should be tagged quickly this week or next.
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