Recap The short squeeze scenario played out. The range expanded without any significant retracement. That is a bit surprising.
Outlook Still no signs of accumulation and breadth is diverging from the rally. Very close an important top now. Again, knowing that it is developing a top does not mean that you just step in to short it. In fact, when we know that is the case, the best bet is to stay on the longside until important price zones are tagged. mid 1380 is one such zone.
Lawrence's Comment
Recap
Congestion. Stuck at 50% week range around Y+1. Closed the week above Y+1.
Outlook
Way stronger comparing to Dow or S&P. Definitely bullish as Y+1 was defended.
Only way to send ...
S&P 500 May 02 to May 06 Outlook
Lawrence’s Comment
The short squeeze scenario played out. The range expanded without any significant retracement. That is a bit surprising.
Outlook
Still no signs of accumulation and breadth is diverging from the rally. Very close an important top now. Again, knowing that it is developing a top does not mean that you just step in to short it.
In fact, when we know that is the case, the best bet is to stay on the longside until important price zones are tagged. mid 1380 is one such zone.
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