DOW CashUS markets have reversed back into the 3-week cycle highs but have failed to close above them.
These cycle highs define the overall trend of the market...
S&P Weekly CASH
S&P is the same, but technically weaker than the DOW because of price trading below the Yearly 50% levels.
And both markets are still trading below the Breakout Quarterly lows from December 2007.
Quarterly downside breakout, along with a failure to close above the Weekly cycles, this favours a rotation down next week....
DOW and S&P Weekly Futures
When we look at the Weekly charts, March has just completed and set-up the April 50% levels.
Therefore for any UP move to continue in US markets, I would like for Price to rotate back down next week into the April 50% levels before moving higher
DOW and E-mini Daily charts
The UP move started from April and the new 'time', thrusting upwards from the Weekly 50% levels.
This week was the first time that any US market was able to trade above their Weekly high channels, where Price was supported.
However next week that Weekly support will shift higher, therefore the support will disappear.
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...
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