DOW S&P Weekly charts
US markets remain range bound trading below some major resistance levels :- June breakout and August 50% levels.
The expectation remains that price should hopefully complete the lower levels in this quarter before any 3-month counter-trend upwards begins...
DOW and S&P Daily chartsEverything about the past 3 weeks of trading set-up Friday as the
potential continuation of the down trend in US markets
From the 'pop' upwards at the start of August, the 2nd week's failure
to close higher on Friday above the August 50% levels, and then the
sell pattern this week and break below the Weekly 50% level this
week.
Even after Thursday's failure (2nd day stall) and no 'Hook' day above
the Weekly 50% level, Friday looked like a 'text book' Sell pattern.
S&P 5-day patternBreak of support on Monday and trend continues down:- monthly 50% level rejection pattern...
Expectation on Wednesday that the US markets would move into a 2-day counter-trend move upwards...and with Thursday's failure to close above the Weekly 50% level, everthing looked perfect for the down trend to continue.
Expect Friday rallied off support and not break lower...
As a day-trader it doesn't really matter where the market goes:- simply trade the levels.
But as a swing trader on stocks over weeks and months, I was hoping
this was going to be the final drive down into 2008 lows before we finally
get a 3 month counter move upwards (as shown in the Weekly charts)
Friday's price action at this stage only leads me to think more sideways
price action, even though next week is the 4th Week :-
4th Week:- last week of the month often starts the next trend, which
leads into the continuation of the trend in the following month, but who is not to say that
next Week just continues higher....
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