Dow 30 Jun 02 to Jun 06 Outlook

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.