8:35am
SPI:-
A break of the 3-week lows of 6572 and expectation is that the market will begin a rotation back down into the November 50% levels @ 6362
Whenever there is a break of the 3-day lows, (Friday) there is a historical expectancy that around 72% of the time since 1999 that the next day will try and rotate upwards, that was the view yesterday. Instead Monday followed the trend down.
Therefore:- there is still the expectation that there can be a rotation upwards today and into tomorrow.
Weekly trends:- Whenever there is a Weekly UP trend often we see every day's low is confirmed with a R44 spiral point. These lows often send the market higher a minimum 44 points and then continue higher the next day, and each day the same thing happens.
Yesterday we saw the opposite, the R44 Spiral point 'high' sent the market down, and trending down. Now if this market is a 'down' weekly trend this week then the R44 Spiral point 'high' @ 6617 is going to be critical, because a rotation down from the Spiral point, and a break of yesterday's lows could send the market down towards the lower pivot.
I wouldn't even think about trying to trade longs below yesterday's low.
A bullish market would and should remain above 6617 and continue to move upwards.
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