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.
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"
Previous Weekly Report
DOW Monthly
DOW has moved back into the Monthly 50% level in the first week of February.
These 50% levels define the trend, and whilst below the expectation is to continue down.
I would have preferred US markets to have actually closed this week on its lows and be pushing lower next week before a potential reversal back towards the Monthly highs.....
S&P Weekly
Because when we look at the S&P on Friday, price has actually closed above the Monthly 50% level.
This higher Friday close was set-up with Thursday's Daily HOOK pattern over the Weekly 50% level, which leads to a higher Friday close.
However, in any down trend the most robust levels of resistance have always been the Weekly highs.
Therefore around 886 is still viewed as Resistance until broken, with the view price is still heading lower.
Above 886 and the expectation is that the S&P is moving back towards 930-45.
I didn't want to see US Markets move up this week, because it doesn't clarify the Monthly cycles.
A Drive down and a reversal off the Monthly lows, and I would have looked for a move back towards the Monthly highs:- 25-30%.
At this stage I now have to treat the Weekly highs as resistance until broken
S&P 5-day pattern
Any down trend and reversal within the Weekly timeframe won't be confirmed until price has broken the 5-day filter (blue channel)
It started with Support on Monday, a reversal off Thursday's lows and move upwards.
And then on Friday, had continued upwards as part of the Weekly hook pattern.
And that will continue next week.
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