Recap Just like NQ, ES tested Y-0 at the start of the week and then immediately selloff to Y-2. Y-1 acted as resistance giving the selloff more firepower to the downside. The STOPD level target Y-3 was tagged on a gap down and ES took off from there. Closed the week above midpoint.
Outlook The extra push higher that ES got in the end of the week is purely short squeeze and option expiration mess. There is no signs of accumulation nor visible buying volume. A consolidation between Y-1 and Y-3 is needed in this case for the bulls and bears to sort out this mess. May take 1 to 2 weeks before a clear direction is formed.
Lawrence's Comment
Recap
Tight range consolidation near Y-0 first half of the week. Then the whiplash mentioned last week came. First a push towards Y+1 and failed. Then collapsed at the end ...
S&P 500 Apr 18 to Apr 22 Outlook
Lawrence’s Comment
Just like NQ, ES tested Y-0 at the start of the week and then immediately selloff to Y-2. Y-1 acted as resistance giving the selloff more firepower to the downside. The STOPD level target Y-3 was tagged on a gap down and ES took off from there. Closed the week above midpoint.
Outlook
The extra push higher that ES got in the end of the week is purely short squeeze and option expiration mess. There is no signs of accumulation nor visible buying volume.
A consolidation between Y-1 and Y-3 is needed in this case for the bulls and bears to sort out this mess. May take 1 to 2 weeks before a clear direction is formed.
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