Random support is also the area of interest for those traders that believe that the 2012 Primary cycle highs will push the trend lower, as is often the case when the month of MAY rolls around.
That move lower could be gradual, as it unwinds over the next 2-months with a downward bias into the start of the 3rd quarter.
S&P monthly and Weekly cycles
S&P has formed a tight 5-day pattern around the random support zone.
This pattern is often seen as a NO CONTROL, when the open and close of the previous 5-days is in the middle of the range...
As we can see the S&P 500 is now caught between Support and the MAY 50% level...
The Question now is which way will the market break, as often after a NO Control pattern the next 5-days trends in 1 direction.
As mentioned in last week's report...
it either rises or it gradually unwinds as it follows the Weekly cycles (lower lows):- towards the MAY lows @ 1315
Trend guide is simply based on the Weekly level @ 1350
