DOW E-mini 19th March 2008

DOW and E-mini Daily charts

Both the DOW and E-mini have moved towards their 3-day highs, and are trading around the Weekly .618 highs.

In fact US markets aren't that far away from the March 50% levels, and it won't take much to push them above those highs, especially with the March contracts expiring this week.

Note: we can see the 3-week dynamic high channels as shown in both charts above....

DOW 12674 and E-mini 1375

Since the start of this year, US markets and along with the Australian market havn't been able to trade and close above those trailing Weekly levels.

So those upper levels will be important reference points, but they will shift higher with each proceeding Weekly timeframe.

DOW and E-mini 5-day patterns and intra-day charts

Both markets closed above the 5-day highs, this often pushes the market higher the next day.

But it's still 8 hours before the US day session opens, and hopefully those two markets can come down and test the Risk levels before heading higher....

At this stage the bias is to rise higher into Expiry, but there can be intra-day weakness.

Day-traders use the levels above....