DOW and ES-minis
US markets have continued to swing back towards the December 50% level.
The breakout on Wednesday and confirmation of the trend above the Weekly 50% level will most likely push further and will follow the weekly trend higher into Friday.
We have already seen the reaction to the markets in Australia on the last day of the Month, as prices rise upwards from a lower weekly open and into a higher weekly close (better shorting potential next week:- day traders)
DOW and ES-minis
Yesterday I wanted the US markets to move in either direction so that a trade could be made:- Short resistance or Buy support.
The only market that aligned was the ES-minis, with support off the Weekly 50% level.
This price pattern is shown throughout the book, the reversal patterns and support is verified by the daily close above and re-test of support to confirm the UP move. However most of the UP move has continued overnight in US markets and traders now find themselves around resistance.
A higher open on Friday will naturally try and fade the move down, but I think any move down on Friday is going to be short-lived and will probably try and move upwards in Friday’s levels and maybe beyond.
There might not be much resistance on US markets on Friday, but there is major resistance next week. (Weekly report out tomorrow)
Below Thursday's Resistance and expectation the market is pushing lower.
Above Thursday's resistance and expectation of a higher Friday close, and much better shorting opportunites next week:- Higher Weekly open and expectation of a 2-day stall/reversal.
Posts
