DOW S&P Weekly 22nd August 2009

S&P Weekly bar chart

S&P and DOW have continued up in the 3rd Quarter and the S&P will complete the Yearly 50% levels by next week @ 1037.50.

Potential continuation upwards in the 4th quarter to 1102, however at this stage 1037.50 is vewed as a Target and resistance level since March lows and the 3rd Quarter 'thrust' pattern.

DOW S&P Monthly

My view this week was that US markets would reverse down from the lower August highs on Monday and move down into the September 50% level, and then continue higher to complete the Yearly 50% level.

That was based on last Friday's lower Weekly close below both 9366 & 1012:- Higher Weekly 'sell' pattern

There was a sell off on Monday, however the Market turned around and continued higher.

DOW S&P Weekly

Monday Sold down breaking previous support levels, and if US markets were going to go down price should have tested the 5-day 50% level and continued down on Wednesday

However, the 5-day 50% levels were tested on Tuesday butWednesday provided a HOOK pattern:- higher Daily close.

And as per BOOK, Weekly HOOK patterns favour a higher Weekly close.