"For many these October levels might seem support, especially if there is a 2-3 day counter-trend move in the markets next week, but probability patterns often suggest that the price normally follows the model, so the expectation is that November lows are the target before any major rally or support is verified…
I do expect a 2-3 day rally upwards next week, but firstly I would like to see a test of the November and Weekly lows next week before a major counter-trend move upwards towards the weekly 50% levels.
The trend will probably continue down on Monday or hopefully it will so that these lows verifies support, before there is a 2-3 up move back towards the recent break.
Therefore the Weekly 50% levels next week are resistance zones for a continuation move down after any 2-3 day counter-trend UP move. (previous Weekly Report (11th November)"
DOW and ES-minis Weekly report:- This weeks trading has been that in a nutshell, and by looking at the Weekly charts, whilst price is trading below the Monthly and Quarterly 50% levels the expectation is that both markets are going down and testing the November lows.
This week along with the lower weekly open, like many lower weekly opens, tried to push upwards before hitting resistance and drifting back down.
However with this week ending, the higher weekly open next week can therefore continue down into another 5-day pattern towards those November lows as shown the Weekly charts:- A higher weekly close followed by a lower weekly close as it heads down into November lows before major support is found in both these markets for this current month...
This week along with the lower weekly open, like many lower weekly opens, tried to push upwards before hitting resistance and drifting back down.
However with this week ending, the higher weekly open next week can therefore continue down into another 5-day pattern towards those November lows as shown the Weekly charts:- A higher weekly close followed by a lower weekly close as it heads down into November lows before major support is found in both these markets for this current month...
When we look at the medium term trend, this is defined by the Weekly 50% levels and the 3-day cycles, whilst price is trading below both these levels then it verifies the overall Down trend
"Friday’s trading is either going to set-up another wave down or if it closes around the middle of the 5-day range, then next week the 5-day 50% level can be a risk level to trade a 3-day UP move from next week..(Friday Report)"
"Friday’s trading is either going to set-up another wave down or if it closes around the middle of the 5-day range, then next week the 5-day 50% level can be a risk level to trade a 3-day UP move from next week..(Friday Report)"
The 5-day 50% level, as show above (red lines), are going to be a critical factor in next weeks trading because it’s going to set up the next 3-days of trading. Above and it will head back towards the Weekly 50% level.
After that expected move, the Weekly trading range has a random outcome, because it’s got 2 options:- just continue higher into Friday (higher Weekly close), or stall and reversed back down in a 2-day stalling pattern. But I’ll come to that later in the week.
Note: A bearish pattern will just sell-off on Monday from the 5-day 50% level and head down, and probably continue down over the next few days into November lows and into Major support
