S&P Monthly
S&P continues to trade below the Monthly 50% level, and at this stage we have an expectation that price is rotating down towards the June lows.
The current 'major' support levels around the 3-quarterly 50% level & MAY lows are extremely robust, and it doesn't necessarily mean that the trend will continue down into a double monthly low but there are a number of patterns in the lesser timeframes that will provide some pre-emptive moves.
S&P Weekly and 5-day patternLast week's price action was 'pre-emptive' as it played out as expected.
A number of precise text book patterns over the past 2 weeks.
Previous Week saw a Weekly low breakout and trend spike down into the
MAY lows.
Pre-emptive:- This week saw the 3-day counter-trend move beginning from the
Weekly 50% level and retesting the previous Weekly low breakout and then
a Thursday sell pattern with the expectation of a lower Friday close.
Normally Thursday has a much greater range on the
downside (trading below the monthly 50% levels once again), but Friday’s break verified the downward move into the Weekly 50% level and Friday’s lows"
Next Week:- Friday's 5-day low support can often provide a 2-day reversal pattern upwards using the Weekly 50% level as a guide.
However, I'm not sure that the market will continue much further from Wednesday.
The reason being is that a Weekly breakout (1168-73 previous Week), will often extend down towards the Weekly lows.
Currently that hasn't happened, which means anything below the Weekly 50% level and the bias is to continue towards the Weekly lows either next week or it could take a number of weeks to continue to drift down into the Weekly lows.
