"I can see higher prices over the next two weeks:- but I would like to see a rotation down and test the Weekly 50% level early next week, and if that occurs then markets should continue higher into a higher close on Friday.
If that patterns play out but Friday can't remain above the monthly 50% levels, then it's beginning to look like these levels will be resistance and a 'sell' pattern could eventuate later this month..."
Previous Weekly Report
DOW and S&P Daily
This week played out precisely, with US markets reversing down into the Weekly 50% levels finding support and moving higher on Friday.
However, the concerning pattern was Friday's lack of buying power to close above the Monthly 50% level.
As mentioned in the previous Report, If Friday can't close above the monthly 50% levels on Friday it looks like the US markets could end up with a 'sell' pattern in the last week of August...
DOW and S&P Weekly charts
Often when markets breakout of the monthly channels they often come back and re-test the breakout and then continue with the overall trend. This is what's been happening in the US markets at the start of August, a re-test of the June breakout with the 'pop' pattern at the start of August.
So at this stage these upper levels are major resistance zones, but I would give it another another Week of trading to get a better idea on the trend in this quarter.
S&P Daily and 5-day pattern
As pointed out on Thursday:- trade longs above the blue channel, and then trade longs using Yellow support on Friday.
But like any previous 'BUY' pattern towards the 5-day highs, Friday failed to continue because of the monthly 50% levels resistance levels.
Next Week:- I won't have a view on US markets until the end of next Week.
Whilst price is trading above next week's 50% level price can follow the dynamic timeframes higher into next week's highs.
But a Weekly close below next week's 50% level and price begins to look like the 'sell' pattern at the end of August.
Day traders simply use the 5-day pattern levels, as per premium Report
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