DOW:-
US Markets are trading around their highs but still under important levels on Friday…
There is still a large gap towards the 3-day lows, and there is still an expectation that Friday and easily have a down day…because of the change of the 3-day cycle.
I classify yesterday as a ‘stalling’ with most of the of the day spending below the Resistance zone of 12401 before a late move upwards towards the Daily highs…
If the markets are going to continue higher on Friday, they will need to break the channels highs:- That won’t occur until the break out of 12578… expectation that the DOW will move towards January 50% level and as high @ 12812…
Any reversal down would be towards the 5-day 50% level…(resistance 12401)
E-minisExact same expectation:- price is trading around the 3-day cycle highs 1360 (resistance)
Any rotation down would be towards the 5-day 50% level…
Breakout above 1377 and expectation price is moving toward 1397+
Whenever the channels come together there is a higher probability of a breakout, but it needs to be verified first by price trading outside the channel….
Full Weekly report tomorrow:-
If the market moves down into a ‘blow-off’ bottom in this quarter then I expect a massive counter-trend move upwards back towards the 3-month highs before the next major sell-off down in the 3rd Quarter.......... (US Weekly report 19th January)
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