DOW and S&P Monthly
US markets have acted precisely since the breakout of the October lows in the first week.
1.Price has remained below the October breakout.
2.Price has retested the breakout to confirm it in the 2nd week.
3.Price has rotated back into the November 50% level in the last week of October.
4.Price has move in a 'thrust' pattern from the November 50% level down in November's
lows this week.
5.And currently November's lows are supporting the market.
My view is that price will continue down into December's lows, and form a robust support zone.
And in late December or early January begin a major swing back towards the Yearly breakouts, which coincide with September's lows this year. (3rd Quarter lows)
DOW and S&P Weekly
I think there is going to be a short-term bounce next week, but then continue down in December.
However:- my preferred pattern would be to see Monday and Tuesday drive down into the Weekly lows (next Week), and then from Wednesday up into Friday continue higher back towards the December balance point.
What's going to push the market higher is Financials, and banking stocks aren't ready for any moves higher other than short-term 3-5 day up moves.
December's lows complete the double monthly low pattern, which can provide a relief rally similar to when the double monthly lows pattern occurred in March 2008.
