At this stage any reversal down is towards the Weekly 50% level.
However, Thursday has a 5-day breakout, which normally favours a higher move into Friday’s highs"
S&P Weekly and 5-day pattern
US markets continued upwards on Friday because of the 5-day breakout from Thursday, resulting in a Weekly close above July highs.
There is a Quarterly Thrust Pattern that is pushing the Market higher, and because of this pattern price can continue to follow the Weekly ranges and push upwards next week.
Any trend reversals in the market often occur at the start of the new trading week, A higher weekly open that sells down towards Support, in this case the Weekly 50% level.
Therefore next week becomes critical on the direction of the market, even though I still think markets are going higher in the 3rd quarter.
It will depend on how price responds to a higher Weekly open and trading around the 5-day highs, which is when most trend reversals occur.
The minimium pullback based on this pattern is a 2-day reversal, but it's how the 2-day reversal moves that will make a difference.
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