DOW and ES-minis:-
Tuesday continued down into major support levels based on the November lows and Weekly channel lows. This was the expected move this week as prices pushed down from Monday's open.
Around these support zones we saw major buying that pushed price back into the 5-day 50% levels. If there is going to be a reversal off these lows, then Wednesday will need to move back above the 5-day 50% levels and begin a swing back towards the 3-day highs and Weekly 50% level.
These lows are based on the Daily timeframe and calculating the higher timeframes.
When you look at the Weekly timeframe, the November lows are actually much further down:-
DOW 12694-12713
ES-minis 1399
Even though these levels on Tuesday found support, if the market breaks Tuesday’s lows then there could be a swift move down to much lower levels based on the Weekly timeframe….
Weekly charts can be found in last weekend’s report showing lower levels.
US report continues below….
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