Last breakout level, May 14 high, is 327.33. Today's low is 328.28. For the past breakouts in May 2021, September 2020 and March 2020, 2 out 3 have the gap closed. Anyway, after re-test previous breakout level, when there is a strong bull signal, bulls will buy above it.
For the strong breakout on May 19, usually there will be two legs down. The first leg has completed. Odds favor another leg down. Many bulls are willing to buy when there is a new low with strong buy signal.
Market is now in trading range. There will be strong price action after consolidation ends.
There are several resistances above. 1) it is the top the...
It looks neutral since this week closes not near its high. However, if the market repeats what happened during the last pullback in March, we will see trading range for two weeks and then move upward to new high.
Today there is surprise gap down and bounce back. Strong premarket price action resulted in big gap down. And bulls successfully defended the bottom from May 12. This has formed tight bear channel. Again it is now close to top of the channel. Bulls are not in control yet unless break last lower high around 327.
It is now around top of the channel. Third leg down is usually rare. Market direction is not clear. I guess it is going to be trading range with slightly higher odds for green for this week.
If there is 3rd leg down, at least 10% correction is expected.