if below at the start of next week, then look for a 2-day reversal pattern. If price breaks out of the 5-day lows on Tuesday, then the trend will continue lower for the rest of the week...
Previous Weekly Report
S&P Weekly cycles
Breakout of the 5-day lows occurred on Wednesday @ 1178, matched with the Weekly 50% level, and the rest of the week has continued lower.
My view is that the trend will continue down towards the September lows, with a possible dip down as low as 1045-56 in October.
Once that occurs my view is that the downward trend will stabilise for the rest of 2011, and move into a 4th Quarter consolidation pattern.
This will set-up new levels for 2012 for a possible move towards new lows in 2012.
