S&P Yearly 2009Expectation that the S&P 500 should reach the Yearly lows in 2009 sometime in the 2nd quarter of this year, if not sooner.
Once around those lows I would pretty much think that the Market will begin to bottom out, and gradually rise upwards and stablise around those lows.
DOW S&P MonthlyGlobal markets are following the Monthly 'thrust' patterns down from the 50% levels and moving into a 2-month wave pattern into lower lows in February....
DOW S&P Weekly"In the short-term if US markets move back above their Weekly 50% levels....I would continue to look for the next 5-day pattern to follow the trend down into Next week's Weekly lows."
As per Previous Weekly report, the price action in the both markets played out precisely, and I would continue to look for a move down into next week's lows, as price follows the Monthly trend lower.
However, another pattern that I favour after a 3 week trend, is a Weekly timeframe that actually closes higher, before the trend continues lower the week after that in the following month.
At this stage I can't guarantee a higher Weekly close, because early next week I favour more weakness, but if price stabilises in the first 2 days even without reaching the January lows, I would then see if there is a potential higher close by Friday.
If this is the case, then this sets up more weakness the Week after as price continues down into February's lows.
- Daily Trading Set-ups & Analysis
