DOW S&P Weekly 16th MAY 2009

DOW S&P Monthly

As per previous Report, the first Resistance levels were hit last Week with the MAY highs.

There is an expectation that US markets should continue down towards the 50% levels.

I do have higher prices in the 3rd Quarter, but I want to see where MAY ends up closing before committing to the view of higher prices.

DOW S&P Weekly

There is an expectation for prices to head down into the RED levels in MAY in both markets...

However, it's up to those Weekly 50% levels on whether prices head down early next week.

A lower Weekly open and trading around the Weekly 50% level might see a 2-3 day UP move before another push down later next week.

A weaker pattern in the US should have seen Friday close much lower than where it closed.

DOW S&P Weekly 9th MAY 2009

DOW S&P Monthly

US markets have followed the Trend reversal from the Mnothly 50% level and into the Month highs.

These highs are the first resistance levels in MAY since both reversing from the MARCH lows...

Expectation is that US markets should begin to slowly unwind and move back down into support levels and the Monthly 50% levels....

S&P Monthly

I want markets to come back down and retest support in MAY, because there is a larger cycle in play based on the Primary Trend.

Since US markets have found their Yearly lows in 2009, the rotation pattern in global markets is to rotate back towards the Yearly 50% levels.

In the case of the S&P 1037


DOW monthly

Yearly 50% level 9872

Therefore there is a larger trend in play, as long as price remains stable above the Monthly 50% levels.

The ideal pattern in to get some resistance around these MAY highs and move back down into support later this month.

If that plays out, then it allows traders to move back into positions to capture any higher moves in the 3rd Quarter

DOW 5-day pattern


Day trader simply trade the rotation and extension within the 5-day patterns

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DOW S&P Weekly 2nd MAY 2009

DOW S&P Monthly

US Markets continue to push up towards their Monthly highs from the April 50% levels.

The April highs have dropped, and any higher moves in these markets and likely path is towards those highs in MAY:- resistance in this Quarter.

At this stage US markets look like moving into a 2-month sideways pattern between Monthly resistance and Monthly 50% levels until the end of the Quarter, which should provide swing traders with ample opportunities.

DOW S&P Weekly

US markets pushed up this week reaching their Weekly highs and stalling.

Even though the trend remains up and can continue up, we are back to a higher Weekly open next week.

A higher Weekly open means a short-term pullback in the trend.

That pullback is back into the Monthly balance points in MAY (red Line)

S&P 5-day pattern

No breakout of the 5-day lows this week, instead price remained supported and followed the 5-day pattern higher as it reached the Weekly highs.

In conclusion:-

US markets have continued to move higher. There has been no Monthly resistance levels and price is simply following the monthly trends higher

I was bearish on the Markets if there was a 5-day low breakout in the last week of this month and April close below the Monthly 50% levels.

This hasn't happened, therefore my view now is a 2-month sideways pattern between Monthly 50% levels and upper resistance levels.

For day traders, we all simply look to short resistance and trade support in the 5-day pattern, as the market continues higher in MAY.

If those levels fail in the 5-day pattern, we simply adjust to the market the next day.

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DOW S&P Weekly 25th April 2009

DOW S&P Monthly

US markets continue higher this week, and the expectation is that markets should continue higher until they hit 'resistance', which is much higher at the moment (April Highs).

Next Week is the last week of the month, where it closes and how it closes is extremely important on whether the UP trend continues in the following Month of MAY

"Rising Weekly ranges but shorter in length and coming into the last week of this

Month.....especially if there is any break of the 5-day lows...."



DOW S&P Weekly

"I'm looking for a 2-day pullback from next Week's higher open.

It's a pattern I always use in rising trends.

If price is going to continue higher then it should move upwards in the 3rd day once again"


This week saw a Sell off on Monday and then support around the Weekly 50% levels once again.

The important pattern on this week's higher Friday close was Tuesday's HOOK pattern from Tuesday's lows.

This is normally is a pattern that will often see higher prices by Friday:- Higher Weekly close.




DOW 5-day pattern

After Monday's Sell off down into the 5-day lows.

The rest of the week was about trading longs using support into Friday's higher close.

Next Week:- US markets are back around higher Weekly closes and
5-day highs, and I'd look for the exact same patterns that have occurred the previous few weeks to continue next week

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DOW S&P Weekly 18th April 2009

DOW S&P Weekly

"I would treat US markets with the same patterns as last Week

2-day pullback and then a higher Weekly close" (Previous Weekly report)

US markets continued higher this week following the same patterns as the previous week:- 2-day pullback and a higher Weekly close.

And at this stage my view is exactly the same for next week....


DOW 5-day pattern

DOW and S&P 5-day pattern this week was a mirror image of the previous week:- rotation and extension.

And traders should use the exact same patterns next week, because the most robust form of trading is simply using Support and Resistance, along with trading the underlining Trend.

And that Trend is UP....(above Monthly 50% levels)

DOW S&P Monthly

US markets continue to push higher from the 50% levels towards the April highs.

Therefore the UP trend reversal from March lows has still got further to run if it follows the 2x Monthly wave pattern upwards.

However, and I've said this a couple of times already......

"Rising Weekly ranges but shorter in length and coming into the last week of this

Month.....especially if there is any break of the 5-day lows...."

We can see it won't take much for US markets especially for the DOW to be back below the Monthly 50% levels if there is a last Week break on the downside.

In conclusion:-

I'm looking for a 2-day pullback from next Week's higher open.

It's a pattern I always use in rising trends.

If price is going to continue higher then it should move upwards in the 3rd day once again.

If price begins to fail and the 3rd day remains below the 5-day 50% level, my feeling is that all traders should keep and eye out for any 5-day breaks on the downside as the end of the Month nears.

S&P Monthly

Because if price reverses down, which is the same pattern that occured in 2003, then the S&P will be back down towards the lows once again.

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DOW S&P Weekly 11th April 2009

DOW S&P Monthly

US markets pushing up from the April 50% level, with the extended target the April highs.

As long as price remains above the 50% level the view is to continue higher

DOW S&P Weekly


As per previous Weekly report.....

I was looking for a short-term pullback into the Weekly 50% levels from a higher Weekly open this week.

This played out with a 2-day pullback and then a higher Weekly close (shorten trading week).

Next Week:- I would treat US markets with the same patterns....

Around the Weekly highs random resistance and short-term pullbacks within the 5-day pattern in a rising trend.

One thing to keep an eye out is......

Rising Weekly ranges but shorter in length and coming into the last week of this Month.....

Especially if there is any break of the 5-day lows....

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DOW S&P Weekly 4 April 2009

DOW S&P Monthly

US markets trading above their 50% levels, and whilst above those levels the view is for price to continue towards the April highs.....

Below those April 50% levels, and expectation price is heading lower once again....

DOW S&P Weekly

Last Week's view was an early push down into the start of April, and then most global equity markets would follow the same pattern and continue higher:- higher high.

This played out precisely with US markets testing the Weekly 50% levels on Monday and then moving higher on the first of the Month.

The first targets were reached in April both have stalled around those levels @ 7979 & 842.

And now i'm looking for a short-term pullback. Because it's a higher Weekly open and price is trading around resistance levels I would always look for a 2-day pullback into the Weekly 50% level.

IF US markets are going higher in April, then price should be supported around those levels and follow another higher Friday close.

If US markets don't find support and begin trading below both the Weekly 50% and Monthly 50% levels, then my expectation is for a weaker 2nd Quarter.

S&P 5-day pattern

The 5-day pattern last week was lifted straight out of my book based on short-term trading within a larger timeframe model.

Monday's push down into the Weekly 50% levels:- support

And then Wednesday's rally rising up from support into Thursday's highs, and Friday support pushing upwards.

Next week will be exactly the same:- trade the levels and keep an eye on the higher timeframe 50% levels.

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