DOW and S&P Monthly chartsOctober low breakout and expectation of price testing the November 50% levels and then continuing down into the November lows.
Last Week reversed into the Monthly 50% level and sold off....
DOW and S&P Weekly
Any continuation down will be defined by the Weekly 50% level.
At this stage price is trading below the Weekly 50% level, and Friday's trading is often a probability pattern which goes back and re-tests the 50% level and then continues down the following week.
If Friday was actually Tuesday, then I would favour more weakness down into the Weekly lows.
However Monday next week will actually be back above the Weekly 50% level.
Above the Weekly 50% level and the view is price is moving back towards the November 50% levels and Weekly highs.
Basically any down trend needs to sell off on Monday......
Last Week's sell off began with a breakout of support on Wednesday.
In conclusion:- my view still stands that markets are heading down into November's lows
However:- if price doesn't break Monday's support,(Monday sell off) then the view is, price will probably end up back around the Weekly highs by Friday next week.
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