This currently alerts me to a probability pattern that doesn’t favour a higher
Friday close this week, but a lower Friday close
If trying to find a pattern to Short trade today, then it's going to be difficult unless it's hitting the highs on Tuesday.
It's trading around Support and a lower Daily open on Tuesday"
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DOW Weekly and 5-day pattern
US markets continue to remain in a consolidated trading pattern, and at this stage I still favour a lower Friday close unless there is a breakout of the 5-day highs and a push towards the Weekly highs.
Tuesday ended up rising up from support:- lower open but didn't move far enough to take any intra-day short positions around Tuesday's highs, as per morning report
S&P Monthly and Weekly
US markets continue to push higher and aren’t trading anywhere
near Resistance (April Highs) compared to the Aussie market reversing
down from the April highs @ 3852 looking to move back towards the
MAY 50% level.
I mentioned this a few of weeks ago in the Weekly report
"Rising Weekly ranges but shorter in length and coming
into the last week of this Month.....especially if there is any break of the 5-day lows...."
This week is the last week of the month and there isn’t anything to
suggest that there is going to be a sell off.
In the Chart on the Left we can see the Weekly bars continue to
close higher on Fridays and trading above the Monthly 50% level.
In the chart of the right we can see price remains supported above
keys levels:- Weekly 50% levels.
But what do we notice?
I developed a pattern that alerts traders to a change or loss of
momentum when price isn’t trading near resistance; it’s called ‘DROPS’
This is where the Weekly highs suddenly drop below previous weeks
where they are constantly making higher highs.
I've highlighted Weekly Drop and Monthly Drop patterns previously, which often see a
reversal of the Timeframe 'BAR' closing in the opposite direction of the current trend.
This currently alerts me to a probability pattern that doesn’t favour a higher
Friday close this week, but a lower Friday close: - Random length.
It just basically says…. if you are in a winning ‘short’ position and it’s going
in your favour, then there no reason to cover positions until the close of Friday.
That just could mean a lower Friday close, which could see prices
rise upwards once again from next Week:- lower Weekly open and new
Month starting from MAY 50% level:- Support and continuation upwards.
Or it could result in a lower Monthly close below support:- bearish.
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