DOW S&P WeeklyUS markets completed the move into the August highs with Friday closing below.
My expectation is that prices will begin to slip back over a number of weeks towards the Weekly 50% levels.
The first sign of the reversal will be price trading below the 5-day 50% level, but won't be confirmed until there is a 5-day low breakout of the range.
However, I'm not expecting the US markets to drop like a 'thud', I’m expecting the US markets to zig-zag their way back down, mainly within 5-day pattern rotations.
DOW S&P MonthlyWe can see the breakout of the July high and extension towards August highs:- Dilernia Principle.
My view is now to reverse back down and retest the July breakout in August...
That could travel as far as the monthly 50% level, but that Monthly 50% level might be September's 50% level.
However, the first stage of the pullback is the Weekly 50% level.
Once that occurs I'm looking for a continuation upwards to complete the moves into the Yearly 50% level as previously described many times in the past few months.
