S&P Weekly and 5-day pattern
US markets opened higher and pushed down failing to reach Friday's support zone, which I thought it would....
And late short-covering in the Futures market has sent the S&P back towards it's 5-day 50% level and Weekly breakout level.
DOW Weekly and 5-day pattern
Thursday's Trading in the US acted near precise to the Premium Report.
1. Push down into Support and rally back into Tuesday's lows.
2. Reverse back down into Support, which broke and has continued down.
3 higher timeframe patterns driving the market lower in November's lows and probably continue lower into December's lows.
S&P Weekly and 5-day pattern
SPI Weekly and 5-day pattern
My view is that the SPI is supported around the current lows and I'm looking for a move back towards the Weekly 50% level over the next 3 days.
Today was simply trade the 5-day levels.
It started well with the SPI moving higher from 3568 early in the day...
But once the market opened after 10am sellers entered the market, which coincided with the lift of the ban on short-trading resulting in Resource stocks being sold down, pushing the market down.
Once below 3568, the market path was to continue down into 3520, and below that 3471.
Late short-covering around current Monthly lows.
Even though I'm looking for a continuation down into the Weekly lows, my expectation that US markets would be supported on Tuesday and swing back towards the Weekly 50% level.
There was early support on Tuesday pushing the market higher, but then slipped back to retest support.
Support has held on Tuesday, but the bounce wasn't as robust as I hoped.
Until a late surge in futures saw some 'robust' buying into the close.
SPI Weekly and 5-day pattern
The SPI started with a 2x44 rally from 3626 upwards, stalled and reversed back down...
" SPI is moving into a double R44 range and stall and reverse...
With most UP moves I would like to see a 44 point reversal and then continue any further gains from a 44 point low and rising higher...Any push down towards 3626 this afternoon has to hold.
Below 3626 and probably head down towards 3573"
Premium Report 10:48
The SPI reversed around the top after 11am and reversed back down into 3626.
If the SPI was going to rise upwards then it had to bounce off 3626 and continue higher.
If it broke 3626 then the SPI was heading down into 3573.
If 3572 couldn't hold after 3pm it was going down into the 5-day lows @ 3530.
Those market paths were mapped out, and it was simply trade the levels.
In conclusion:-
This price action reminds me of the blow-off top early November, after the rotation back into the November 50% level @ 4315.
The market rallied into the 5-day highs @ 4360, and then reversed back down with US markets reversing.
Therefore if this is a blow off bottom using the 5-day lows, then US markets need to reverse upwards on Tuesday back into their weekly 50% levels.
As I pointed out in the Weekly report, once these levels reach down on Monday-Tuesday, i'm looking for a reversal back towards the Weekly 50% level over the next 3 days.
But that's not going to happen if US markets have a down day on Tuesday.
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