There are two possible patterns for the rest of this month
#A continues to drift lower until the start of the next Month, but then
makes higher highs in February (using the Weekly lows as support)
#B Next week more selling appears and the S&P continues down into the January 50% level @ 1214-1222.
Previous Weekly Report
S&P Monthly and Weekly
My view was that the S&P has reached its highs and was reversing down, however I needed to see a reversal pattern on a 'Friday' down into the Weekly 50% level.
The previous Week didn't play out as expected, and we saw the Market push back towards the highs (as noted in last week's report)
And finally this week provided the reversal down into the Weekly 50% level, with Friday's price action.
As per expectation of the reversal down from the highs, the minimum move is down into the Weekly lows.
These Weekly lows have less probability of supporting the market after the January highs have been reached, but there are two possible patterns that can play out.
#A:- market continues down and follows an orderly double Weekly low pattern:- next week's lows and then the following Weekly lows, that coincides with the February 50% level
or
#B:- next week continues to trend down into 1212-14
