This is the pattern which is now occurring, along with the break of Monday's support and then continuation down into Tuesday's lows.
The first two days is normal 2-day pattern:- 50% level towards the 5-day lows.
Below 8698 and things start to get ugly this week, which will probably lead to a 5-day breakout and the completion of the November lows probably by next week"
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DOW Monthly and 5-day pattern
Wednesday has ended up 'ugly':- resulting in a 5-day breakout and continuation down towards November's low.
By the time the US market day session opened, the market sold off from 8698 and never looked back.
Note:- I mentioned back on the 11th October that this pattern would play out. I also mentioned that once this pattern has occurred, it will be a major swing point that could finally see a 'larger' counter-trend move upwards.
A larger counter-trend move upwards will still result in lower lows in 2009, because the market will still go lower next year.
Therefore it's imperative that these November lows in global markets 'hold' support and we see some buying support in the last week of this month.
Buying support:- lower Weekly open rising upwards from in the last Week of November, and then pushing higher from the December's 'balance point':- counter-trend move.
This will result in global markets re-testing the 2008 yearly low breakouts, and then rejecting down towards new 2009 dynamic lows next year.
Otherwise another Monthly breakout means another dynamic push down in December, which pushes 2009 lows even lower...
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