8:42am
SPI has followed the pattern of reversing down into November 50% levels (6369)
These levels are major support levels for this month, but just like the US markets where support followed for nearly 3-weeks before breaking lower, the same can apply in Australia.
Yesterday I was bullish on the SPI, but I was only bullish if Monday opened lower and we could all trade upwards into 6568 and then hold. However the higher open had taken care of not BUYING the market, and as a 'day-trader' then only way I was going to trade any longs was from R44 lows, and along with the Dilernia-Pivot @ 6583 provided a short-trade back down and into R44 lows.
With US markets trading below their 5-day 50% levels at the time I didn't move into longs on those R44 lows, but switched my attention to trading US markets instead.
Today:- There are two gaps, the recent lows @ 6450, which can send the market down if it aligns with a 44 point spiral top, but the gap that I'm looking for is 6481-6500 (today-tomorrow)
At this stage I favour trading longs up into the First pivot (6451) and hopefully higher, a bearish pattern is 44 points up and reversal back down, taking out the 5-day lows. An Open around the 5-day lows gives traders a potential 44 point up move into the lower pivot before Risk increases.
Risk is 6451 (Dilernia Pivot)
DONT TRADE longs below 6417 and the 5-day lows
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