DOW Weekly CASH ChartExpectation of further weakness from April has come early with the break of the Weekly lows this week.
Overall down-trend is towards the Yearly lows:- with the Dilernia Principle of a 2-Year lower low Pattern expected into 2009.
And along with consolidating phases within each Quarterly and Monthly period....
"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 contract expiry."
DOW Futures Weekly and Daily chart:- After a 4-day sideways pattern the break on Friday has confirmed that the market is moving down towards March lows, with once again the first support-target zone is the Weekly lows @ 11687....
And we had a high probability pattern to favour the down move continuing on Friday using the 2-day 'support' break from Thursday's highs.....(Chart Below)
DOW intra-day & 5-day ranges:- After 4 weeks of sideways price action in February, the down-trend began with the #2 break last Friday.
Over the previous 4 weeks, the 2nd support zone provided lows in the market, on that day it was the first time it didn't, and this resulted in the down-trend continuing.
And we can see the same pattern occurring: break of 'support' moves down into the 5-day lows, and continues down towards the next support zone in the next trading day:- Thursday into Friday.
The same will apply next week.....there is a breakout of the 5-day lows on Friday (expected resistance) with a push down into Monday's lows (support) using the 5-day 50% level as resistance.
S&P Weekly CASH
Break of Support and heading down towards the Yearly low......
Expected price action was to head down towards Yearly lows in the next Quarterly timeframe, but this has occured earlier with the break of the Weekly lows this week.
E-mini Daily:- 4-days of sideways price action, with the break of Support on Friday.....
Expected down move into the Weekly lows:- 1267 , and then down into March lows.
E-mini intraday and 5-day ranges:-
Once again the Break of #2 last Friday began the wave down.
This Week is following the same patterns of break of 'support' and moving down into next 'Support' , where once again short-covering came into the market but the short-covering was going to stall because of the 5-day lows.
This Friday the market was supported and Monday is viewed as 'Support' with the expectation that any 2-3 reversal upwards will be a short-term move before the market moves lower next week towards March lows...
Please read the Daily Report....
DOW Weekly CASH Chart
"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 contract expiry."
