S&P Monthly and Weekly
Last Week of the month and I was looking for October highs to be resistance zones and for markets to pullback into the monthly 50% levels.
There were two set-ups....
SET-UP A:- was a 'crash pattern' that would see price all the way back down into the October 50% levels.
This is normally set-up with a crash on Tuesday and price trading below the 3-week lows.
SET_UP B was also a reversal, but only a short-term pullback into the November 50% levels and for the trend to continue higher.
Sadly SET-UP A didn’t continue down, as it would have provided far profits on the way down, and I had a robust swing points to trade longs from lower prices from next Friday.
The trend would continue down another week, but then provide support next Friday and for a large 3-day counter-trend rally back upwards the week after that.
Instead price has closed above the 3-week lows and trading on or near the November 50% levels.
At this stage price is going the be defined by the monthly 50% levels in November, and if price remains above the 3-week lows @ 1019.50, then November is going to remain range bound and consolidate (Weekly ranges up & down)
Which is perfect for short-term swing trading using the patterns in the 5-day range.
Below 1019.50 and price is following the move down into 996 (delayed Set-up A)
I would need to see another 5-days of trading to get a feel for how the rest of the 4th Quarter is going to trade.
