Recap Breakout play worked out. Clearing Y-1 gave us a straight melt down to Y-3 target. Then a technical bounce took ES higher back to Y-1. Closed the week below Y-2 and midpoint.
Outlook Daily uptrend is broken. As long as 1450 down to B-0 acts as resistance, more down side is expected.
The overall structure points to sudden huge drops over the more normal selloffs where we see bulls giving up. Next level down is Y-5 / B-2.
Lawrence's Comment
Recap
As expected the squeeze driven rally did not last. Sharp pullback below Y-0 to close the open gap below happened first. Since then renew buying took Dow to Y+2 ...
S&P 500 Oct 01 to Oct 05 Outlook
Lawrence’s Comment
Breakout play worked out. Clearing Y-1 gave us a straight melt down to Y-3 target. Then a technical bounce took ES higher back to Y-1. Closed the week below Y-2 and midpoint.
Outlook
Daily uptrend is broken. As long as 1450 down to B-0 acts as resistance, more down side is expected.
The overall structure points to sudden huge drops over the more normal selloffs where we see bulls giving up. Next level down is Y-5 / B-2.
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