DOW S&P Weekly
"I would treat US markets with the same patterns as last Week
2-day pullback and then a higher Weekly close" (Previous Weekly report)
US markets continued higher this week following the same patterns as the previous week:- 2-day pullback and a higher Weekly close.
And at this stage my view is exactly the same for next week....
DOW 5-day patternDOW and S&P 5-day pattern this week was a mirror image of the previous week:- rotation and extension.
And traders should use the exact same patterns next week, because the most robust form of trading is simply using Support and Resistance, along with trading the underlining Trend.
And that Trend is UP....(above Monthly 50% levels)
DOW S&P Monthly
US markets continue to push higher from the 50% levels towards the April highs.
Therefore the UP trend reversal from March lows has still got further to run if it follows the 2x Monthly wave pattern upwards.
However, and I've said this a couple of times already......
"Rising Weekly ranges but shorter in length and coming into the last week of this
Month.....especially if there is any break of the 5-day lows...."
We can see it won't take much for US markets especially for the DOW to be back below the Monthly 50% levels if there is a last Week break on the downside.
In conclusion:-
I'm looking for a 2-day pullback from next Week's higher open.
It's a pattern I always use in rising trends.
If price is going to continue higher then it should move upwards in the 3rd day once again.
If price begins to fail and the 3rd day remains below the 5-day 50% level, my feeling is that all traders should keep and eye out for any 5-day breaks on the downside as the end of the Month nears.
S&P Monthly
Because if price reverses down, which is the same pattern that occured in 2003, then the S&P will be back down towards the lows once again.
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