Therefore the current view is:- a 6 week consolidating pattern of rotating UP and Down Weekly timeframes until the closer it comes to the contract expiry in March, before any potential 2nd Wave down..
2nd February Weekly Report
Quarterly lows supporting the market and we have moved into a tight trading pattern with predictable price action:- Sell higher opens along with 'short-covering' rallies off Quarterly support after 14:36 in the afternoon.
I expect this price action to continue, but not for much longer. Contract expiry and a new monthly timeframe just around the corner, and as often happens price will try and rotate back towards the March 50% level.
The entire market has flat-lined around Quarterly lows, due to the financial sector taking a beating.
I pointed this out in the Stock-Report (banks) some weeks ago ,the breakout of the Quarterly lows in January and the potential for much lower prices that many weren't expecting could occur, and with banks coming into timeframe support levels last week, the expectation is that they will try and swing back towards the April 50% levels in the coming weeks, which should help stabilise our market before the next 'sell' pattern occurs in the new Quarter.
Last week's trading and we saw the familiar patterns of price being directed by the 5-day levels and the 44 spiral-point ranges. I expect this to continue, as it has always done in the past, and will continue to do so in the future.
Things we need to keep an eye on are the 14:36 'short-covering' patterns around R44 spiral bottoms and timeframe support, and also the double R44 low patterns that occurred last Monday and Tuesday.
Also each current 5-day 50% level will play a gravitational role, and each previous 5-day 50% level will play a resistance and support level.
On Monday we will open in the middle, therefore the expectation is that it will push outwards once again. Normally it has been down on Monday, but it could easily be upwards with the last week of the month as it tries to swing back towards the 50% level of the next month:- March 2008........
Please Read the Daily Report..... " the trader trading".....
