Monday is viewed as 'Support' with the expectation that any 2-3 day reversal upwards will be a short-term move before the market moves lower next week towards March lows...(Previous Weekly Report 8th March)
DOW Weekly and Daily charts
Last Week the US markets moved into a 2-day counter-trend move upwards into the 3-day highs, and then continued down on Friday, as it follows the overall trend of the breakout Quarterly lows, with the expected down move towards the March lows.
With Financial stocks taking a beating on Friday on the back 'Bear Sterns', the markets are expected to remain in a downward trend.
Only the FED stepping in on Friday to bail out the company stopped the markets falling further.
S&P Weekly and Daily charts Both the DOW and S&P and pointing to much lower prices, this was confirmed with the breakout of the Quarterly lows last week, and the re-test of those lows and failure this week:- 2-day reversal upwards and failure.
At this stage I can't see any major UP move back into higher timeframe 50% level (Trailing resistance) until the next Quarter
DOW and E-mini Intra-day chartsThe most robust pattern when trading the markets within the bigger picture is the 5-day patterns. These dynamic ranges are going to give traders the clearest picture, analysis, and RISK reward when day-trading intra-day trends.
And the Support level is ideal to be trading the movement within those cycles.
And with the break of Friday's support, the expectation is another push down into Monday's lows.
Note: March contract expires next week. Often when the week of contract expiry, there is a tendency for price to push higher into the date of expiry.
The movement and direction of the daily trend, along with 2-3 day swing patterns will be clearly defined by the Daily support levels.
Full Report in the Daily "the trader trading".....
