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…
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…
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