If looking for lows in the market for short-term counter-trend moves, then next week's levels come into play, along with using the 5-day range to help validate entry levels...
Random resistance @ 1285.25
Previous Weekly report
S&P Weekly Cycles
S&P moved down into the Support levels @ 1254-59, and then remained range bound within the Weekly levels, with 1285.25 acting as resistance.
As noted in last week's report, if the S&P is going to find support, it will begin to gradually rise over the next couple of weeks, helped by price remaining above 1268.50
However, traders should always be aware that 3rd Monthly 50% level rejection patterns can often extend downward into following monthly lows in the next Quarter.
S&P Primary cyclesIn 2010 the Market reversed down from the Primary highs and moved down into the trailing Quarterly 50% levels.
The price action in 2011 is following a similar pattern, but without the 'flash crash' that occurred last year.
And if the market follows a similar pattern, and the trend continues to extend downward, then lower Quarterly 50% levels come into play once again @ 1173-1188
Note:- if the S&P 500 rises upwards from this week's lows @ 1254-59, then the 3rd quarterly 50% level will come into play (Yellow)....
And will define whether the trend continues upwards (QE3)....
or moves down into 1173
