break of December 50% levels, support disappears, and price heads straight down into the December support.
3-day consolidation pattern, and the break of the 3-day highs, changes the cycle and the market rotates upwards.
Even when we look at the monthly timeframes before, it all fits in nicely with Time and Price analysis using the Dilernia Model:-
October high-reversal, November 50% support-rotation, December 50% break-down, December lows support- rotation.
Next Week:- Trend will be decided by the Weekly 50% level @ 6377..
Above and price is moving back upwards to close the ‘Weekly Gap’, and then be defined by January’s 50% level.
A failure around the Weekly 50% level, will be part of the rotation back down after the change of the 3-day cycle. There is such a large gap to the 3-day lows, that I favour at least a 2-day rotation-stall before any up trend is going to occur.
The important part of this week, is where price closes, because it sets up important levels for Primary Trends in 2008