Recap Y+1 (i.e. 15000) acted as resistance as expected and sent Dow back down yet it failed to test Y-0. This is bullish. 2nd attempt at Y+1 breached the resistance and opened the door to higher price since. Closed the week at week high and above Y+1.
Outlook A classic consolidation week at 50% previous week range. Closed above previous week high is bullish from consolidation. Until Dow stays firmly below Y+1 there is not much reason for Dow to go lower until B+2 is tagged.
Sell side opportunity needs Dow to drop back down to B-0 and forming a sell setup between B-0 and Y+1. The downside target from there is at least B-2.
Lawrence's Comment
Recap
Flushed to almost Y-2 target at the start of the week. Used up the bias right from the start often points to a reversal. Once NQ pushed above Y-1 ...
Recap of Last Week Early in the week a low was formed to create a powerful IHS with neckline at approx. prior week high (green zone). A breakout of ...
Dow 30 Jul 08 to Jul 12 Outlook
Lawrence’s Comment
Y+1 (i.e. 15000) acted as resistance as expected and sent Dow back down yet it failed to test Y-0. This is bullish. 2nd attempt at Y+1 breached the resistance and opened the door to higher price since. Closed the week at week high and above Y+1.
Outlook
A classic consolidation week at 50% previous week range. Closed above previous week high is bullish from consolidation. Until Dow stays firmly below Y+1 there is not much reason for Dow to go lower until B+2 is tagged.
Sell side opportunity needs Dow to drop back down to B-0 and forming a sell setup between B-0 and Y+1. The downside target from there is at least B-2.
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