Recap Similar to Dow, ES ripped thru resistance zone and went straight up for days. Classic blowoff top type action. Almost tagged Y+2 and stalled. Closed the week near week high and above Y+1.
Outlook Limited upside to below B+2 with possible whiplash action to drop back down to B-2.
It is clear that ES is in a topping process here. Structural boundaries will likely be breached at various timeframes without providing us actual direction of the market. Staying on the sideline is a good choice if this kind of volatility is not your cup of tea.
Lawrence's Comment
Recap
Upside triangle did not break to the downside at all. Instead, formed an up channel and drifted higher and paused after 50% of prior week range is reached. ...
Lawrence's Comment
Recap
Loonie reacted the same way like the other majors to the FOMC announcement last week. Break down from the daily up trend tagged normal sell off target of Y-2. ...
S&P 500 May 13 to May 17 Outlook
Lawrence’s Comment
Similar to Dow, ES ripped thru resistance zone and went straight up for days. Classic blowoff top type action. Almost tagged Y+2 and stalled. Closed the week near week high and above Y+1.
Outlook
Limited upside to below B+2 with possible whiplash action to drop back down to B-2.
It is clear that ES is in a topping process here. Structural boundaries will likely be breached at various timeframes without providing us actual direction of the market. Staying on the sideline is a good choice if this kind of volatility is not your cup of tea.
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