S&P (e-mini ) 6th October 09 recap

"3-week low support and an early rotation back into 1038 in the S&P.

Last Friday 5-day low support favours a 2-day reversal pattern upwards, and often that reversal pattern is towards the 3-day cycle highs @ 1055.

If the S&P had closed above 1039 I would look for a trending move towards 1055"

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S&P Weekly and 5-day pattern

Expectation of a 4th Quarter up move after reaching the 3-week lows last week, however based on Monday’s close below the 1039, I was expecting a 3-day drop pattern and then trend to continue higher from Thursday.

However, once above 1039 on Tuesday the 2nd day reversal pattern back towards 1055 played out.

At this stage US markets look well supported with an expectation price should follow the last leg of the July breakout pattern into October highs.

If the trend is going to continue higher, then we need to see a daily close above 1055 and then a short-term 2-3 day consolidation above 1039.


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