S&P 500 Jan 31th to Feb 4th Outlook
Last Week Recap
Holding above prior week midpoint led to an explosive jump to prior week high. 3 distinct pushes visible on 30-min and hourly ended with a break down selling towards prior week low. Ended the week at exactly the downside target area (red zone).
Next Week Outlook
On daily basis, prior week was the top and previous week was a retest with spike high that failed to breakout to the upside. Such pattern is commonly followed by either a retest of the original top (green zone) or a sell off to 50% downside expansion target quickly.
Both scenarios point to more weaknesses to come and that the likely first target of the down move is 100% downside expansion. It can take more than a week to get there.