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Weekly Report 12 July 2008
DOW Weekly
DOW and S&P have reversed off their July's lows, and the expectation remains that price is heading lower in 2008....
DOW Daily
DOW moved UP from the lows hit the Weekly highs and has reversed back down into the Weekly 50% level....
Last Week global markets reversed down from their highs, but this reversal pattern was just a rotation back down into the Weekly 50% level.
There is a big difference between a reversal down this week and previous weeks, it's occurring above the weekly 50% levels and not below.
Therefore next Week can continue higher:- lower Weekly open and rising higher after it's verified the 3-day cycle support on Friday.
If the market is going to rise higher and back towards the Monthly 50% level, then it's going to align with the start of August (SET-UP A)
If SET-UP A plays out then I'm looking for a move back down into the Yearly lows, but it might take a few weeks to unwind into a new down-trend.
SET-UP B:- is simply the down-trend continuing from August, which normally occurs with the market opening below the August balance point and rejects down.
S&P Weekly CASH
Expectation that the S&P is rotating UP into 1329 and then continue down into the Yearly lows....
S&P Weekly and Daily charts
And that's going to depend on how well the Weekly 50% level support price next week, and then the August direction early the following week...
We can see the reversal down into the 3-day cycle and support has been verified on Friday, which is occurring above the Weekly 50% level.
This pattern is normally a 'bullish pattern', especially in BULL markets, but this isn't a bull market and I still have the view that markets are heading lower in 2008, but it might take another 5-days of trading to see whether set-up A or B plays out.
- Daily Trading Set-ups & Analysis
