and if the S&P rises upwards, then the 3rd Quarterly high around 1325 will probably form resistance and push the market lower once again.(Previous Weekly report)
S&P monthly and Weekly cycles.
The confirming pattern to validate the reversal pattern started with a breakout of the Weekly highs @ 1295 on Wednesday
There were two patterns that were going to play out :-
#1 how price responds to the Monthly 50% levels? and as we can see the market opened above the July 50% level @ 1313
#2 how far price travels as part of the Weekly break and extend pattern?
The answer is that the S&P will travel to next week’s highs @ 1350 as part of the break and extend pattern from 1295
Fundamentally, some would say W.T.F. just happened, but technically the price action is not unusual, even though the speed of the move even caught me out, with the lack of minor intra-day pullbacks within the daily range (5-day pattern trading & 8.5 points)
Next Week: - my view is that 1348-52 will act as resistance for the next 3-5 days....
And then the 3rd quarterly level @ 1325 comes into play...
1325 will define whether the trend continues higher, and follows the monthly cycles towards new highs
or
whether the trend again moves into another 3-month cycle that consolidates ‘sideways’ until the start of the next Quarter using the levels shown above.
