DOW E-mini 7th March 2008

On Wednesday US markets closed above their 3-day highs. On Thursday they came back down and re-tested the 3-day lows and Weekly support.

On Friday US markets are still trading around the Weekly lows, and a break of these lows and market is following the 5-day ranges lower....

Whenever the market breaks support in 1 day, the expectation is that price is moving down towards the next support in the following day.

The first down move is the 5-day lows on Friday, and below these lows price 'could' move down as far as support shown in the above charts.

That's the view for Friday... the trend guide is the 5-day lows from Thursday with the expectation price is moving further down.

Note: When you look at the Daily charts you can see price has moved back down and tested the 3-day lows (change of cycle),and Weekly lows confirming support.

I would be extremely surprised that buyers would come into the market around here, but it's a pattern that I've seen before that could attract buyers into the market and push upwards on Friday.

However, I always have the view that a close below the support levels in the previous day will often push down towards the 5-day lows in the next day.