If the Weekly support moves, then from next week there is a greater probability that price will come back into the Weekly 50% levels, test them and then move higher.
In conclusion:- the bigger picture shows there is major resistance around the highs, and I've factored in, that for any higher move to take place I would like price to come down and re-test the Weekly 50% levels first..."
Last Week's Report...
DOW Daily Chart
US markets reversed back down into the Weekly 50% level....
I also mentioned in last Week's Report, that if US markets are going to move higher, then this down move this week had to happen before any higher move is going to occur
Two plays next Week:-
A:- moves up into the Weekly 50% level and heads down into the Weekly lows
B:- moves down early on Monday, finds support around the Weekly lows and swings back towards the Weekly 50% level....
DOW Quarterly and Yearly Cash:-
When we look at the bigger picture the market is playing out A set-up, which can continue lower into April lows.
B Set-up:- Bounces off the Weekly lows next week and swing upwards into the Weekly 50% level, but then over the next few weeks moves higher...
S&P Daily chart
The chart above pretty much sets up my view of the price action for next week:- A push lower into Weekly lows, before reversing back up into the Weekly 50% level.
After any reversal back into the Weekly 50% level, the rest of the week has a random expectation:- reverses back down breaking the Weekly lows, or continues higher into Friday.
S&P Quarterly charts
Because when I look at the bigger picuture in global markets, they still favour making lower lows in this Quarter, than going higher.
And this will be confirmed with a break of the Weekly lows, as shown in the Daily charts.
S&P 5-day intra-day charts
