Recap A week of pure up drift. ES opened above Y+1 and started to levitate. Y+2 target reached in slow motion. 50% range reached by the end of the week as if to show a point. Closed the week above Y+2 and midpoint.
Outlook The rally is now stretched so sharp pullback is expected but not necessary going lower by much. A retest of Y+1 is likely. Y+1 / B-2 is now strong support thus ES can choose to build its next consolidation zone right there instead of moving lower.
Lawrence's Comment
Recap
ES started the week strong pushing higher but failed to stay above Y-0 and collapsed back down to Y-1 and below. That opened the door to Y-2. From there ...
S&P 500 Jun 02 to Jun 06 Outlook
Lawrence’s Comment
A week of pure up drift. ES opened above Y+1 and started to levitate. Y+2 target reached in slow motion. 50% range reached by the end of the week as if to show a point. Closed the week above Y+2 and midpoint.
Outlook
The rally is now stretched so sharp pullback is expected but not necessary going lower by much. A retest of Y+1 is likely. Y+1 / B-2 is now strong support thus ES can choose to build its next consolidation zone right there instead of moving lower.
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