Weekly report:- major resistance with a high probability that whilst price is trading below December 50% levels, the market will make a lower low.
However this needs to be verified by the break of the Weekly 50% level and 3-day cycles, which might take a few days to unwind.
Short-Term:- higher Weekly open and expectation that there will be a 2-day stall reversal with the Weekly 50% levels a guide of the strength of the trend. (Weekly report 1st December)
US markets have moved down for 2-days into Weekly Support:- and the expectation that Wednesday will have a slight UP bias, with the most probable continuation of any down trend on Thursday:- only if it breaks support.
We can see the levels in the market:- the movement of the 5-day lows have now come into the Weekly 50% levels, so there is a cluster of support around these lows.
The trend on Wednesday is going to be defined by the 5-day 50% level: -
Above and expectation that the market is heading back towards the highs
Below and expectation that market is being pushed back down into support early in the day.
Don’t trade longs below 5-day lows (13217 & 1458)
US markets are much more vunerable due to the downgrades on Financial stocks on Tuesday.
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