Recap Failed to bounce back up in the beginning of the week opened the door to tag Y-2. Interestingly, however, Y-2 was not tagged even after 2 attempts to flush lower. Closed the week below midpoint and Y-1.
Outlook Out of the 3 indices, NQ is the strongest. Yet it failed to push above Y-1 by week close. The pattern in place is an incomplete upside triangle. Upside triangle is a continuation pattern. In this situation, that means more downside potential.
To invalidate the pattern or to break out of this down trend, NQ has to produce a double bottom against B-1, or, a flush low that snap back up quickly above B-1.
Overview
Emini overnight range 2053.25 up to 2069.25 (at 8:55 am)
Overnight Midpoint 2061.25
Previous Week High 2066.50
Emini S&P is now trading at the top part of its range with ...
Nasdaq 100 May 14 to May 18 Outlook
Lawrence’s Comment
Failed to bounce back up in the beginning of the week opened the door to tag Y-2. Interestingly, however, Y-2 was not tagged even after 2 attempts to flush lower. Closed the week below midpoint and Y-1.
Outlook
Out of the 3 indices, NQ is the strongest. Yet it failed to push above Y-1 by week close. The pattern in place is an incomplete upside triangle. Upside triangle is a continuation pattern. In this situation, that means more downside potential.
To invalidate the pattern or to break out of this down trend, NQ has to produce a double bottom against B-1, or, a flush low that snap back up quickly above B-1.
Will be a difficult week ahead.
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