DOW S&P MonthlyMAY high breakout and expectation that price would continue higher into JUNE highs, but instead the past 5 days remained in a tight sideways pattern.
Last week’s view was for an early sell pattern set-up from Monday, but once the first 2 days remained above the Weekly 50% level, there was an expectation that prices would push higher.
At this stage there is a view of higher prices in 2009 in June, but with September futures running at a discount to the current SPOT contracts this often suggests lower prices.
In the short-term:- whilst price is above the Weekly 50% levels, the trend remains up.
Weekly 50% level is the same as last week (chart Below)
Below Weekly 50% level and it’s a pullback towards next months 50% level.
