S&P 500 E-mini Futures 16th January 2016 Part 2

S&P 500 Primary & Weekly Cycles

 

Markets are now officially in a Bear Trend, and often those trends follow a 2-period cycle, and that trend is going to look for the next Primary Support zone @ 1849.

 This pattern now has all the hallmarks of forming a 'double bottom' (Previous Report)

 

When we reference price action with Dilernia Principles, we can see the Weekly Break-n-Extend Pattern taking it from last week's breakout @ 1988 down into this Week's low @ 1857. This also completes the move down into the 2016 lows & 'double Bottom", earlier than expected.

This Hallmark 'double bottom' isn't a precise TEXT bottom that 'screams' BUY the market, because any buying that 'might' appear from next week is going to struggle to move higher than 1921, as this level will likely form Resistance for the rest of the month.

There's enough information in my book using 5-day patterns that can validate short-term counter-trend moves.