US report 14 November 2007


DOW and ES-minis


I expect a 2-3 day rally upwards next week, but firstly I would like to see a test of the November and Weekly lows next week before a major counter-trend move upwards towards the weekly 50% levels.The trend will probably continue down on Monday or hopefully it will so that these lows verify support, before there is a 2-3 day up move back towards the recent break (Weekend Report)


The support was verified on Monday, however the rally completed in 1 day back towards the Weekly 50% levels. The same Weekend report suggests that these same Weekly 50% levels are resistance zones, and at this stage that’s my view.

Yesterday was the first day rally, any rally that swings back towards these levels normally plays out on a 2nd day. Therefore the 2nd day needs to consolidate below or close below these levels to verify the overall down trend…

US report continues below…