The Weekly charts below show both US markets heading down towards the November lows calculated using the Weekly timeframes.
I’ve already pointed out in the Weekly report that my expectation is a 2nd wave sell-off pattern towards the December lows, however the best set-up would be a swing from the November lows and then move upwards into the end of this month, for the 2nd wave down to evenutate from the December 50% levels.
Monday was a large trending down-day, and moving into the Weekly lows, where the ES found buying support.
My Expectation was for a down-day on Monday, but I didn’t expect such a large move down, however my expectation is for an UP day on Tuesday breaking the 5-day 50% level and then heading upward towards the 3-day highs once again.
Tuesday:- 5-day 50% level is going to define the trend.
A push lower would be towards the 5-day dynamic lows in both markets, where major support would verify a swing back above the 5-day 50% level.
Don’t trade longs below blue channels.
Above the 5-day 50% level, and look for resistance around yesterday’s 5-day 50% level.
Day traders:- use levels in the intra-day chart to manage positions.
Tuesday was my BUY day:- However that set-up could happen from lower prices, or just move back above the 5-day 50% level and continue higher.
Below the 5-day 50% level and expectation is price is heading towards daily lower channels, as shown in above chart
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