S&P (e-mini ) 18th August 09 recap

"Tight 5-day range below the monthly highs has sold off at the start of the new trading week from the 5-day 50% level, and confirmed with a break of the 5-day lows.

Expectation that US markets are moving down towards the Weekly 50% levels.

5-day low breakout and price can continue down towards the 5-day lows on Tuesday.

The ideal pattern for the trend to continue down would be price moving back into the 5-day 50% level and then selling down:- 5-day 50% level resistance"




S&P Weekly and 5-day pattern

Expectation of further weakness on Tuesday didn't eventuate after testing the 5-day 50% level...

However, because of the current price action the overall Weekly pattern hasn't changed, until price is trading above the level on Wednesday.

A retest of the level (today) can continue down the next day from a higher daily, as part of the overall trend.


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