S&P Monthly3rd Quarter thrust pattern from July 50% resulted in a breakout of the 3-month cycle in July.
A breakout in the 3-month cycle normally moves into a 3-month breakout pattern until this start of the next 3-month cycle in October.
There was an expectation that price had to come down into the 3-week lows early in October and then complete the break and extend pattern @ 1092.
Normally when these cycles complete price will move into a rotation pattern looking for the monthly 50% levels.
Sure the market can go higher, but at this stage I'm treating the Global Equity markets as range bound around upper resistance levels until November.
Set-up B is most likely with a rotation into the monthly 50% level in November and then higher moves into in the end of the Year.
SET-UP A is less likely to occur but it can happen because the monthly 50% level is currently much lower
DOW S&P WeeklyNext Week is simply a view of price being range bound between the Weekly 50% levels, and maybe travel as high as the Weekly highs.
Any moves during the week will be based on using the support or resistance levels within the 5-day pattern.
Bearish patterns around these October highs, will need to be verified with a Friday close below the Weekly 50& levels.
If price is trading below the Weekly 50% levels, then traders need to keep in mind that SET-UP A might be happening.
