Therefore for the next few months I'm looking for US and all global markets to move into a consolidation phase.....(Weekly Report 2nd February)
DOW Weekly Cash (left) DOW Weekly Futures (right)Global markets are consolidating around Quarterly support, and if there is going to be a next wave down it will come in the next Quarter or just after contract expiry in mid-March.
The current price action occurring now, which does seem like there's a strong ' support-base' building, and could result in higher prices in the future, however I can only make a forward conclusion by what I see, and I only view 'support' as being valid during this Quarterly timeframe which will disappear in April and project lower prices....
DOW Daily futuresUntil then the market is range bound and it's getting predictable on how price action is playing out.
Any time the market opens higher and near resistance levels they sell it down, and around the 5-day lows short-covering rallies occur. This price action won't last, but with 1 week remaining until the end of the month we should continue to expect the same.
As the Weekly timeframe begins to 'tighten' and get smaller, there will be a breakout of the range, which will probably occur the closer it comes to the next FED meeting..and contract expiry.
DOW intra-dayThis week's trading provided some extremely robust trading set-ups each day. These types of markets are ideal for 'day-trading', because the 5-day levels play an important part, as price moves from the middle of the 5-day range outwards, and then back towards the middle of the range from outer channels
In trending markets or a trending Weekly 5-day period, you don't get as many high probability set-ups. This is obviously going to suit a certain style of trader compared to someone else, but by reading my daily blog I hope that it can suit everyone...
S&P Weekly Cash...Exact same expectation as the DOW, and the exact same price action occurring......
E-mini Daily and intra-dayLast Week's high probability pattern was a rise upwards on Monday and then look for a down day on Tuesday defined by the Weekly 50% level.
When there was a large UP day on Wednesday, which occurred from lower support (5-day lows) the rest of the trading week moved into a sideways pattern resulting in some good set-ups....
Next Week:- I don't have an overall view of where the market is going or how it's going to play out, other than using the intra-day levels once again, and using regressive trading set-ups daily.
In conclusion:- Quarterly support and range bound, and with the Weekly timeframes begining to tighten there will be a breakout of this 4 week range shortly, probably timed with the start of the new month.
And for day-traders we simply look for the same patterns:- Sell higher opens and look for 'short-covering' rallies from support in the 2nd half of the day until the breakout occurs...
Please read the Daily reports......
