S&P futures (e-mini) 4th August 2011 recap

For this week the resistance remains 1267-1272 (Weekly low)

Trend guide 1251 (monthly lows)

If below 1251 the trend bias in the S&P is down.


S&P Weekly and Daily cycles.


1251 was used as a trend guide, if above the expectation was that 1267/1272 would form resistance and drive prices lower.

However, the cash market opened below 1251, and this put pressure on the market to extend down towards the daily lows, and as part of a 5-day rejection pattern (top to bottom) towards the larger timeframe cycles.

This first target down is 1208, using the 3rd quarter levels, & The larger Primary timeframe reversal down is shown below
S&P Primary and Monthly cycles


The trend bias is following the Primary reversal from the highs down into the 50% level @ 1173, which is a pattern I’ve been waiting for to happen.

The Yearly 50% level is the critical support level, that would provide a bounce in the markets (next week)… helped by it trading above 1208.

if there's a bounce in the market (next Week) then it's likely to stall and fail around 1266 and the September 50% level, and continue down once again

Extremely bearish pattern if the S&P below the Primary 50% levels next week. (1270)


 



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