Dow 30 Aug 19 to Aug 23 Outlook

Recap
Overall whole week behaved what a normal continuation week should with all the details completely messed up. First, Dow triple bottom against Y-1 and bounced back up to Y-0. Failed to hold and sold off back down to Y-1. Gapped through the Y-1 support and jumped down to below Y-2 target. This opened the door to Y-3 at once. Y-3 tagged. Closed the week near week low and Y-3.

Outlook
The price actions last week is the first time Dow failed to hold the minimal pullback zone. It is a very subtle change in its characteristics. It is a sign that some bulls are trapped.

Due to the fact that it is the 2nd significant pullback in the making this year. It no longer has the luxury with lots of buyers waiting below to support it like the 1st one back in May.

Long side will have to find a bottom within the first half of the coming week to get a chance to push this back up. If the bottom is quite far down at B-2 or lower, the bounce will be good enough for daytraders but not necessary a good play for swing traders. The risk reward will be bad for long trades.