DOW S&P MonthlyBreak and extend reversal pattern from April highs down into the monthly 50% levels failed to play out. Instead the April highs formed a resistance zone which now disappears and shifts higher in MAY
There is an expectation that price would continue towards the 2nd Quarter highs, but normally that occurs from the Monthly 50% levels in MAY.
Next week both markets align with the Red levels (single monthly 50% level & 3-week 50% level), and it becomes and each way bet on direction.
Whilst below those levels price is moving down into the MAY 50% levels:- and then it might take a few weeks for US markets to find support (3-week consolidation) and then continue upwards in June to complete the 2nd Quarter highs.
Or next week's continues upwards, as the April high resistance levels disappear and the MAY highs align with the 2nd Quarter highs in the S&P @ 1230.75
Daily report out on Monday
