S&P Monthly
Shift in resistance in the 4th Quarter @ 1126 has pushed the S&P into the January highs 1142.
There is a possbile move towards 1177 in the first Quarter, however that might not happen until next month.
At this stage I'm treating 1142 as resistance.
S&P Weekly and Daily pattern
If there is going to be any reversal pattern next week using January highs as resistance (1142) the higher Monday open needs to have a reversal pattern and to be trading below the5-day 50% level as the first confirming tool (daily close)
The 2nd confirming pattern is a break of the Weekly 50% level @ 1127
Regardless of my view of whether I think 1142 is a top or not, I need to see lesser timeframe patterns to validate the trend and/or reversal of the trend.
I know my patterns extremely well, and I also know January can continue higher.
That's because the breakout of the Weekly highs this week 1133.
I would have preferred 1133 to stall price this week and then continue higher next week, as price would have remained within the Weekly channels, because a Weekly breakout of the highs can often continue to trend during the same month (January- February 1177)
Therefore I'm still expecting a short-term reversal pattern from these levels next week, but by Wednesday if price is still trading above 1133, the market during January looks well supported.
Below the Weekly 50% level will certainly validate my view.
