DOW Monthly chartsUS markets are still in SET-UP A:- drifting lower below the Monthly 50% levels and following the dynamic timeframes lower, eventually pushing the markets into lower lows in 2009.
This is the last week of trading for 2008, so it's important where markets close on the last day, as they will set-up the Primary cycles for 2009 and how far markets will go lower in the new year.
In the mean time next week's trading will still be defined by the 3-week highs, and SET UP B won't occur until there is a Friday close above those highs. (White line)
S&P 500 Monthly charts
SET UP B is the probability of markets moving back towards a 3-point level of 'TIME' before the market continues lower.
In this instance, Price in January would be rotating back towards the Yearly breakouts from 2008, the first Quarterly 50% level in 2009, and also the 3-month highs in January.
We also notice in the forward timeframe that there is now a higher low in the forward monthly timeframe, which often favours higher prices.
I still think all global markets will follow SET-UP B first before continuing lower in 2009, but if it doesn't markets will still go lower in 2009.
