DOW Weekly and 5-day pattern
US markets continued down on Friday:- Weekly 50% level resistance.
A lot of volatility between early support on the Yellow channel and the Weekly 50% level....
And then a late sell-off into the close down into the blue channel.
Expectation of further weakness down next week.....
SPI Weekly and 5-day pattern
I would have preferred a rally into 4050 and then continue down next week into November's lows....
but once price pushed down from the 5-day 50% level @ 3904 to close the gap, and then support couldn't hold (3825), the market lead by financials sold off into the close.
And will probably end up around 3584 next Week.
DOW Weekly and 5-day pattern
US markets pushed down early on Thursday hitting the support and reversing back into the breakout from Wednesday.
There was a 500 point turn around in the Markets, but at this stage this is seen only as a retest of the breakout, which more often can see lower prices once again on Friday.
That will depend on price trading either side of Friday's 5-day filter, because a breakout of a 5-day range often leads into a 2-day breakout pattern:- retest the break and then continue with the trend the next day.
In late trading US continued to rally back towards the Weekly 50% level, which is a good sign for the Aussie market to do the same.
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...
SPI Spiral patterns
DOW Weekly and 5-day pattern.The current view of global markets has been the re-test of the November 50% levels and then the 'thrust-rejection' pattern towards the November's lows.
This is the pattern which is now occuring, 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.
Now it gets interesting.....
Wednesday:- above the blue filter and it normally attracts buyers pushing the market back towards Wednesday's highs:- short term counter-trend move.
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.
SPI Weekly and 5-day pattern 16:15Expectation of downside weakness, and it's simply trade the 5-day levels
Resistance 4065 and below 4032 and the 5-day filter 'caps' the market
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