US markets have moved down into January lows. These levels often provide support for a number of days before any reversal upwards... (breakout above the 3-day highs), which probably won't happen this week. At the earliest next week.
If these levels act as support, it's going to be a 3-day consolidating pattern.
Risk levels on Wednesday for both markets are...
DOW 12681 E-mini 1398
Below those levels and price will follow the daily lows down on Wednesday.Any rotation upwards will be back towards the 5-day 50% level:- above that and the channels highs.
US begins reporting season on Thursday:- strong results and market will be back towards the Weekly 50% level.....
The Finanical sector is the biggest sector in most global markets, and this where the most concern is.... any bad news and it will send the market down even further during this quarter:-
Keep in mind Most Global Markets are trading below their Yearly balance points, so any up moves in the market is viewed as short-term counter-trend reversals within a bigger 'bearish' pattern.
Until price gets back above Monthly 50% levels, which might take weeks.
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