This often happens on Tuesday after Monday initially moves down into the Weekly 50% level and finds support, and then Tuesday breaks support and trends down (large trending day)
Monday:- price normally will try and rise upwards, therefore it won’t surprise me to see a Spike upwards on Monday using Yellow Support in both markets
DOW spike and resistance 10021
ES spike and resistance 1086.
If there is a spike upwards and then price should continue down and into Monday’s 5-day lows, then I would suggest holding positions open because Tuesday might surprise a few people.
Depending on how many contracts traded:- partial exit the 5-day lows on Monday.
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S&P Weekly and 5-day pattern
Everything on Monday has played out precisely, from the rise upwards on Monday and the ‘spike’ into upper resistance levels in both the DOW and S&P, and both markets have reversed down into the Weekly 50% level closing on the lows.
If US markets are going to follow SET-UP B, as per the Weekly report, then Tuesday will swing upwards off these lows and close back above the 5-day 50% level.
However, we aren’t trading SET-UP B, we are trading SET-UP A, and traders should have partial exited around Monday’s low and or the Weekly 50% level and hold…
Because Tuesday might surprise a few people?
Well if it follows SET-UP A, Tuesday’s trending down day will be back around the 3-week lows on the same day and could even be lower by Wednesday.
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