Recap ES gapped up to the strong resistance zone as explained last week and could not push higher. A break down from there gave us Y-0 easily and collapsed down to Y-1. 100% absolute range expansion target reached and led to a strong bounce. NFP report on Friday produced a short squeeze so strong that ES was almost able to produce week high by Friday but not quite. Closed the week above Y-0 and near week high.
Outlook Another V-shape reversal in place. The back and forth action weaved layers of support below making it very difficult to go lower unless ES going higher first. This points to at least a move towards B+2 is in the making. 2100 round number zone is now very strong support until proven otherwise.
S&P 500 May 11 to May 15 Outlook
Lawrence’s Comment
ES gapped up to the strong resistance zone as explained last week and could not push higher. A break down from there gave us Y-0 easily and collapsed down to Y-1. 100% absolute range expansion target reached and led to a strong bounce. NFP report on Friday produced a short squeeze so strong that ES was almost able to produce week high by Friday but not quite. Closed the week above Y-0 and near week high.
Outlook
Another V-shape reversal in place. The back and forth action weaved layers of support below making it very difficult to go lower unless ES going higher first. This points to at least a move towards B+2 is in the making. 2100 round number zone is now very strong support until proven otherwise.
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