US Fed cut and this should stablise global markets, and hopefully begin a gradual rise back towards the Yearly 50% levels over the coming weeks.The previous drop in August 2007, the market reversed but it wasn't confirmed until price moved back above the Weekly 50% level in the following week.
For any UP Trend reversal to take place, the first stage is the move above the 5-day 50% level, and then the break of the 3-day highs, and also the Weekly 50% level, therefore we will need another 3-days of trading and for this Week to close out to get a better chance of a reversal starting from next week...
In August last year the market rallied and made new highs over the next 2 months, in my opinion I don't think this will occur this year because of the Yearly 50% levels. Last year we were trading above them, this year we are not.
I can see a consolidating market over the next 6-months, but further weakness in the 2nd half of the year....
The first baby step in any reversal is the 5-day 50% level (5435)
We need to judge the market by this level, and don't be surprised if it's not trading above it today, we simply trade the trend based on this and focus on 44 point moves...
Above and expectation the market is moving back towards the previous 5-day lows @ 5525 and also the Weekly lows (resistance)...
Any further moves upwards will be back towards the 3-day highs and previous 5-day 50% level @ 5715...that will happen if US markets continue upwards on Wednesday....
We simply have to trade on the side of the 5-day 50% level and use the R44 spiral points as Risk Trades, along with support and resistance...
Support and Resistance is the previous 5-day ranges that have occurred, and the dynamic 5-day ranges in the present give us a market path for the future and expectant path that price can travel towards…
High Risk Trading Longs below 5413
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