DOW
US markets moved down into the 5-day 50% levels and bounced off the 3-day lows on Monday, resulting in a 'HOOK' day back above the Weekly 50% level.
However both US markets are still trading below their 'crash-pattern' breakouts and below the January lows ( DEAD CAT BOUNCE)
"High Probability pattern:- upside move next week.....
Down-day closing below the Weekly 50%, but then the next day 'HOOKS' back inside the Weekly 50 % closing above. The day after that, tests the Weekly 50% level (support), and then I favour a move upwards... (Weekly Report 26th January)"
Above is the Weekend report, if there is going to be a continuation of a move upwards on Tuesday, then first it's got to come down and re-test the Weekly 50% level @ 12225, and then continue upwards towards the 3-day highs @ 12469-509 later in the day.
E-mini:-
The same applies here, price must come down and test 1342 before heading upwards...
This is the only bullish pattern today.
In both markets price shouldn't be trading below the Weekly 50% level...
Bearish patterns:-
Trading below Weekly 50% level and 5-day 50% level on Tuesday....
A move up into the 3-day highs in both markets before price has re-tested the Weekly 50% level. If this occurs, and it's coming down into the Weekly 50% level then increase RISK of trading longs...
Note: both markets remain in overall bear trends.
Posts
