DOW S&P MonthlyAs per Monthly rejection patterns:- expectation that Global Index markets are heading down towards the January's lows, and then will continue down further into February's lows.
January continues down as part of the 2-month down trend towards February's lows:- Dilernia Principle
I would like to see US markets continue down into February's lows in the first 2 weeks of the month.
If this can occur it will complete a 2-month pattern in the first Quarter, and it will probably give markets the first decent bounce for Months.
Even though I think markets will go lower in 2009, I'm not factoring lower prices until the 2nd or 3rd Quarter.
Basically I would like to see a drive down into February's lows in the first two weeks, find support and then we could probably get a 25-30% bounce off the lows.
DOW S&P Weekly
"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"
Last Week moved higher hitting the Weekly 50% levels and reversing down.
US markets can continue slightly upwards next week back into the February 50% levels before the trend continues downwards at the start of February....but it might not.
Basically the Weekly 50% levels will define the trend next week, and which direction the market will take.
S&P 5-day patternMonday moved up from support, which was part of my view of a higher Weekly close.
After 3 days of UP moves, if the Week was going to continue higher into Friday, then price should have remained above support on Thursday.
Once support failed on Thursday there is a natural continuation down for 2-days into Friday's support:- text book pattern
Once again Friday's support couldn't hold, which isn't surprising, because of my view of lower prices early in February.
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