Recap Similar to Dow, ES pushed the envelope all the way. It exceeded Dow in terms of volatility during the holiday season. Closed the week near week high and above Y+3.
Outlook ES does not have a rising wedge in place like Dow so the weaknesses is not as obvious.
If ES spends majority of the week sitting around B+1 and capped below Y+4, will be looking for a swing short back down to Y+2. Need NQ and Dow to go in sync or the short side will not stand a chance.
The less likely scenario is that ES clearing 1470 in 1 go, that stage a melt up to 1500.
Lawrence's Comment
Recap
Aussie rushed to Y+2 and rejected decisively. Dropped back down to Y-0 and bounced. Failed to clear the breakout boundary since. Closed the week near Y-0 and below midpoint.
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Lawrence's Comment
Recap
Got our consolidation-like range. Upside target of above mid-1830s printed. Closed the week above Y+1 and midpoint.
Outlook
Seasonal bullish bias used up at this point. No strong directional play until ...
S&P 500 Jan 07 to Jan 11 Outlook
Lawrence’s Comment
Similar to Dow, ES pushed the envelope all the way. It exceeded Dow in terms of volatility during the holiday season. Closed the week near week high and above Y+3.
Outlook
ES does not have a rising wedge in place like Dow so the weaknesses is not as obvious.
If ES spends majority of the week sitting around B+1 and capped below Y+4, will be looking for a swing short back down to Y+2. Need NQ and Dow to go in sync or the short side will not stand a chance.
The less likely scenario is that ES clearing 1470 in 1 go, that stage a melt up to 1500.
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