S&P Monthly and WeeklyAs per last Week's report, the initial view was that there would be a 2-day reversal pattern back down into 1347, which will then be the guide on whether the trend continues down into the MAY 50% level or not.
I also pointed out in last week's report...
At this stage QE2 remains until the end of June, therefore it's likely to underpin the current trend...
therefore, unless it is trading below the Weekly and monthly 50% level @ 1324.50, the trend bias remains stable.
In 2010 we saw a 'flash crash' pattern in the first week or MAY, and in 2011 we have weakness once again in the first week of MAY, however, this time it continues to remain above support levels, helped by the market being above the Yearly highs in 2011 (1301-1331)
There are two possible patterns that can play out for the rest of the month....
#1) Remains consolidating above 1324.50 for the next few weeks until the start of June, and then makes a play for the monthly highs
#2) the trend continues down using the Weekly 50% level as the trend guide, and follows the Weekly range towards lower lows:- 1310.75 and then 1291.25
