Both Markets reversed down on Thursday breaking the 3-day lows.This week's expectation was that a price would reverse back down and re-test the Weekly 50% levels, if this is valid support zone then the next day should rise higher.
However, I also have a view that US markets would have a 'down' trading week. (lower close on Friday)
However, statistically there is a 72% chance that the day after price closing below the 3-day lows, then next day will be UP..
The DOW is trading below the Weekly 50% level, whilst the ES is above, but both are trading below the 3-day break.
Early price action is going to be dictated by the 5-day 50% level, the trend either way is going to be easily defined by this level.
Down and it will be into support zones.
Above and it can either stall at the 3-day break or continue back towards the recent highs again.
Note:- if the market pushes down early and then swings upwards, but fails the move back inside the 3-day lows, then that could set up a move down early next week.
Full Weekly report tomorrow....
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