DOW and other US markets are being supported around major support zones based on the Quarterly 50% levels. (13441)
Both Weekly sell-offs this month were forecasted and forewarned using 'Dilernia drops' using the Weekly timeframes.
Whilst markets are still trading above these levels, the major trends are still up.
The only worrying thing about the Support zones are:- the next Quarter are showing Drops, this can send markets back down in this Quarter, and it was the reason why the first major sell-off occurred in July. Support will obviously change if next week markets break these 50% levels, because the expectation would be to move back down into the November lows.
But just as the Markets were supported around the previous Quarterly lows, at this stage the only expectation is that the same will occur in this Quarter. And Friday’s trading has at this stage confirmed support.
Book:- “Once the Quarterly 50% level has been reached, price will normally spend a minimum 2-3 weeks consolidating around support…the more time that price spends at this level, the more the market is pricing in value”
Just as the previous Quarterly 50% level provided a number of trading weeks around support, at this stage I have the same view in current global markets.
Next Week:- I have the same expectation next week as two weeks ago, a Weekly ‘bar’ that has an up bias, but the trend is going to be defined by the Weekly 50% level 13758.
Therefore choppy-rotating days as the markets consolidate.
ES-minis Weekly Report
ES is far more compelling when looking at Market dynamics and support.
Support verified in October, and so far verified in November, with both Weekly
'Dilernia-Drops' forecasting and also forewarning ‘weaker’ timeframes this month.
Next Week: Exact same expectation, daily and weekly trends are going to be defined by the 50% levels @ 1528.
Trend remains up whilst above these 50% levels.
There is so much negative news in the US markets, that is hard for any person to have a fundamental reason why markets should move higher, but this is the only conclusion I can make at this stage. And the more it consolidates above these levels the more it’s pricing in ‘Value’
However, if US markets do come under more selling, then the expectation is that not only would the ES come down to 1431, but it could go as far as 1399.25, but historically these next two months don’t normally have ‘bearish tendencies.
