DOW S&P Monthly
As mentioned a few weeks ago...(17th April)
"The UP trend won't continue until the start of the next month after revisiting the MAY 50& levels
or
# follows a double monthly low move into major support levels and the Quarterly 50% levels.(Yellow)
Don't discount this, because the US markets will revisit the 3-month lows during the year and it hasn't as yet. "
Treat US markets as part of a double monthly low pattern into June, using the MAY 50% levels as resistance.
That means, I'm expecting these levels to hold support during MAY, but possibly double dip into lower lows during June.
DOW S&P Weekly
There is a breakout of the weekly lows, which should continue down into the Weekly lows this week.
If that happens then we look for a swing back towards the MAY 50% levels.
Note:- If Monday closes higher but below the Weekly 50% level, I would normally look at this price action as a 'short' trade:- sell resistance and a higher daily open on Tuesday
However, I have also see these exact pattern continue higher and move into a 3-day UP move to retest the previous Weekly lows.
That means that by Wednesday price can be trading above the MAY 50% level, but from Thursday onwards look for a move back down into the lows.
