US markets broke the 3-week lows last Week, therefore an expectation is a two day counter-trend move upwards:- lower Weekly open....
And then look for a continuation down into the Weekly lows....
Once that price action occurs, then looking for a move back up towards Expiry"
Previous Weekly Report
DOW and S&P Weekly charts
Overall US markets are trading below Monthly timeframe 50% levels, which favours further weakness down, however during the week of future contract expiry markets usually (not always) rise up into expiry next Friday.
Once that occurs, then there is a better chance of market continuing lower.
Note:- look at the gap to the 3-week highs, ideally the best set-up for any further weakness downwards would be occurring from the 3-week highs. That doesn't mean price is going to rise all the way back to those highs, it just means that US markets can go into another few weeks of rotating price action, which should align with the Month of July before the next 'thrust' pattern occurs.
DOW S&P Daily charts
Last Week's view was for a two day counter-trend before continuing lower because of the break of the Weekly lows.
Next Week:- If US markets are going to continue higher into expiry then price needs to be trading above the Weekly and monthly 50% levels, which no doubt will form resistance levels...
DOW 5-day pattern
As pointed out in the Premium report, further weakness down on Wednesday after the 2-day stall, confirmed with a break of support, and later in the week price moves back upwards the closer it gets to expiry.
Next Week:- Ideal pattern in both markets is a continuation higher on Monday into the 5-day highs, which match the Weekly 50% level, and then push back down into support.
So the expectation is selling pressure around the Weekly 50% level (5-day highs).
If US markets are going to continue higher into expiry then price should then rise up off support and look for a 'HOOK' day back inside the Weekly 50% level.
A 'HOOK' day will favour a continuation upwards into Friday....
No HOOK day after a reversal pattern down early in the week, and price is following the Monthly trend down into the Weekly lows again....
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