Recap Was looking for further downside and we got that. Not quite tagging Y-3 as Dow stopped going lower when it reached 100% absolute range expansion. V-shape reversal since and cleared Monday high in 1 go. That opened the door to Y+1. Dow got Y+1 the very next day. Closed the week above Y+1 and at week high.
Outlook Well staged news driven short squeeze implies someone in panic mode. Well connected longs forced this turnaround to happen hence it has no sustainability. It is exactly like what happened to euro in the past several years. All rally will likely to be short lived.
Momentum points to Y+2 is in play. A swing top between B+1 and Y+2 points to a steep pullback down to Y-1 as a minimum.
Dow 30 Oct 14 to Oct 18 Outlook
Lawrence’s Comment
Was looking for further downside and we got that. Not quite tagging Y-3 as Dow stopped going lower when it reached 100% absolute range expansion. V-shape reversal since and cleared Monday high in 1 go. That opened the door to Y+1. Dow got Y+1 the very next day. Closed the week above Y+1 and at week high.
Outlook
Well staged news driven short squeeze implies someone in panic mode. Well connected longs forced this turnaround to happen hence it has no sustainability. It is exactly like what happened to euro in the past several years. All rally will likely to be short lived.
Momentum points to Y+2 is in play. A swing top between B+1 and Y+2 points to a steep pullback down to Y-1 as a minimum.
Potential crash pattern in place too.
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