DOW CASH Yearly ChartEnd of 2008 and the beginning of the new Primary cycles for 2009.
Trading range between the 50% levels and the 2009 lows, but there can be lesser timeframes (Monthly) that can extend price further.
At this stage my view in the first Quarter of 2009 is 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.
If that plays out in the First Quarter, then markets will begin to unwind and continue down towards the 2009 lows in the 2nd and 3rd Quarters for 2009
S&P 500 Yearly ChartSame expectation on the S&P....
Rotate back towards the 2009 50% level which matches the 2008 breakouts, then continue into new lows for 2009...
DOW and S&P Monthly charts"We also notice in the forward timeframe (January) that there is now a higher low in the forward monthly timeframe, which often favours higher prices" Previous Weekly Report
This week saw higher prices, however all we have seen is price rotate back towards the Monthly 50% levels, and the market remains in SET UP A.
SET-UP A:- drifting lower below the Monthly 50% levels and following the dynamic timeframes lower, eventually pushing the market into lower lows in 2009.
There is nothing stopping SET UP A continuing in the first Quarter......
S&P WeeklyAs pointed out in the Premium Report on Tuesday......
Monday has 'HOOKED above the Weekly 50% level....
Dilernia Principle:- HOOK pattern favours higher prices into Friday.
This was also set-up because of the higher lows in the monthly timeframe in January, and the expectation of price rotating back towards the Monthly 50% levels.
Next Week:-
Higher Weekly open often favours a 2-day pullback in the new Week.....
Higher Weekly open often favours a 2-day pullback in the new Week.....
Let's see how the market reacts after a 2-day pullback, especially trading below the January 50% levels.
Above January 50% levels and market is following SET UP B
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