DOW S&P Weekly
Last Week we had the same short-term sell pattern on Friday, but this time it's matched with the March Highs @ 10725 in the DOW.
The DOW has been lagging the S&P in market dynamics, and the same thing occurred around January's highs. S&P hangs around the highs and waits until the DOW catches up and then they proceed to rotate back down into monthly 50% levels.
Once again i'll start next week with the expectation of a short-term reversal pattern and then see how it reacts to the Weekly 50% level.
However, I’m not expecting the same swift reversal as in January/February, but I would like to see some short–term pullback into higher timeframe 50% levels before the continuation of the UP trends in the 2nd Quarter.
DOW S&P 5-day patternAs mentioned in Friday's report..." Ideally the best reversal trends align with Friday's highs and higher timeframe levels, but I'm not sure if Friday's highs will be reached.
It didn't align with the S&P but it did on the DOW, and because it's a Friday high I would begin to look for a continuation of the trend down (2-days).
How did I trade Friday?
I personally don't want to be up a night trading the US markets, so I'm confident in using the levels and place limit trades.
I went short on the DOW @ 10724 and 10750 and partial exit @ 10668 (and holding).
I went long on the S&P @ 1160. 25 looking for a 8 point UP move into Friday's highs...
I also placed short trades @ 1168.50 and 1177.
Basically I didn't want miss any potential reversal on Friday, but I also knew that the S&P could have continued into the Friday highs and Weekly highs:- 8.5 point up move
S&P continued higher but only until the DOW reached the Friday highs.
Stopped out on S&P @ 1158 (didn't get filled on shorts)
And DOW followed the reversal pattern and expectation the trend will continue towards the Weekly 50% level.
DOW Quarterly and YearlyOur upside targets in the DOW for 2010 :- 11157- 11637
S&P Targets 1200- 1255In conclusion:-
Any potential short-term reversal from March highs is part of a larger trend move towards those Yearly highs in the 2nd Quarter.
