S&P (e-mini ) 23rd October 09 recap

"Friday’s preferred set-up is October highs resistance and a lower Friday close.

And I would never discount Friday moving into a lower Friday close that actually ends up near the Weekly 50% level on the same day.


S&P is in a 3-day SELL cycle and trend can continue down from Thursday's highs"


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S&P Weekly and 5-day pattern.

US markets reversed down on Friday and into a lower Friday close, but I expected more selling today with price to be trading or closing around the Weekly 50% level.

The 3-day sell cycle and higher Friday open normally favours a lower Weekly close as price is trading around monthly high resistance levels.

I only finished writing a section in my new book “ TIME, PRICE, SUPPORT, RESISTANCE, and reversal patterns after the completion of the 3-month cycles…

Each reversal down started from this exact same pattern:- higher Thursday close and Friday sell off.

And the trend continues down early next week with a break of the Weekly 50% level and a short-term mini collapse down into the Monthly 50% levels (SET-UP A)

Except this time the exact same pattern hasn't occurred as previously with the follow through down into the weekly 50% level not occurring

However, next week's 50% level is the one to watch with the potential SET-UP A in play.

Normally the break occurs in the first two days of the new week, so i'll have a
fair idea whether SET-UP A is going to occur, or price continues to consolidate and remain with SET-UP B.