S&P Monthly and Weekly
Last week's expectation was a short-term reversal pattern (2-day) at the start of the week and for price to remain above 1133.
I'm extremely bearish on US markets over the next two weeks, even though nothing has been validated to confirm my view.
The only thing that's in my favour is that price is trading around January's highs @ 1142 and the expectation is that price will rotate back down into the monthly 50% level @ 1087 by the end of the month.
My Hunch there could be a larger trend move downward (below 1087), but that's another story (Next Week's report)
Friday's reversal down from the highs and back into the lows (above the Weekly 50% levels) can be conflicting.
The price action on Friday if occurring anywhere else in the Secondary trends can often set-up further gains at the start of next week:- 5-day support and above the Weekly 50% levels and the continuation of the Trend (UP)
If the next session in the market closes higher, my view of the market going down could be wrong and the first Quarter follows the market towards 1177.
However, little things can grow into big things and the current price action that is occurring in January is acting in a manner that often leads into big things. And so far the price action has been acting in an expectant manner.
If the next session closes on its lows, but not necessarily below the Weekly 50% levels, then the next day might be the start of the market continuing down.
