DOW (S&P) Daily 26th Nov 2008 recap

"Australian markets have had a 3rd day pattern sell on Wednesday, but dynamically US markets are different, as both are trading above the Weekly 50% levels.

At this stage the expectation remains that US markets are continuing higher....

However, using the filter it's going to give traders are far better idea on any continuation upwards (Wednesday's highs)....

Simply trade on the side of the Yellow filter"

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DOW Monthly, Weekly and 5-day pattern

US markets reversing upwards this week with number of probability patterns playing out using the Dilernia model and principles.

November lows support, and last week reversal back towards the December 50% level.

Daily Hook pattern above the Weekly 50% level on Monday:- probability pattern of a higher close by Friday.

Both those pattern lend each other, as they match the Monthly timeframe support.

5-day pattern:- simply trade on the side of support and price follows the 5-day pattern higher.

So far the 4th Quarter has traded under precise patterns of rotation and extension.



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