SPI 7th November 2007 part 3

10:47am...

SPI is hitting resistance levels around the upper pivot and Weekly 50% levels @ 6716....

The thing you notice is that the 'yellow' pivot line of 6709 isn't appearing in the chart below, it will only appear once the first 44 range has completed.

Ideally we would like for the market to move down into an R44 low and then the Gap, but there is the possibility that the R44 range could swing upwards into 6731, which puts the market above those levels and completes the 44 point range, and could end up heading higher on the "2nd day UP rotation" above the 3-day highs @ 6746.

A break and close above those 3-day highs confirms the change of the 3-day cycle from 'Sell' to "BUY'"

That is why it was important for any 'shorts' to be taken out around 22 points today from swing highs @ 6698 this morning and then let the market run it's course....