US Index Markets:- DOW S&P
3rd quarter thrust patterns sending markets higher with a target towards 9872 in the DOW and 1037 in the S&P 500.
DOW S&P Weekly
Thrust patterns in the 3rd Quarter have seen markets rally into their July highs without any short-term pullbacks..
There is still a view of higher prices in the 3rd Quarter, and July's highs will dynamically move upwards in August, so these resistance levels will disappear.
We are due for a short-term pullback into the Weekly 50% levels, but I
have seen 'Thrust' patterns before and they are what they are....Trending patterns.
And this trend can continue higher and follow the Weekly trends upwards into Next Week's highs.
S&P Weekly and 5-day patternUS markets continued upwards on Friday because of the 5-day breakout from Thursday, resulting in a Weekly close above July highs.
There is a Quarterly Thrust Pattern that is pushing the Market higher, and because of this pattern price can continue to follow the Weekly ranges and push upwards next week.
Any trend reversals in the market often occur at the start of the new trading week, A higher weekly open that sells down towards Support, in this case the Weekly 50% level.
Therefore next week becomes critical on the direction of the market, even though I still think markets are going higher in the 3rd quarter.
It will depend on how price responds to a higher Weekly open and trading around the 5-day highs, which is when most trend reversals occur.
The minimium pullback based on this pattern is a 2-day reversal, but it's how far the 2-day reversal moves downward that will make a difference.
DOW S&P Monthly
Because when we apply the Montlhy ranges, we can see they have broken out and can continue to trend upwards in the last Week of the Month and follow a 'break & extend' pattern UP into August highs.
At this stage, any short-term 2 day pullback would need to see price trading below 8885 in the DOW and 960 S&P....
Otherwise it's going to continue upwards, which is what I think will happen anyway.
