Last day of the trading month and the December 50% level next week will define the trend for the rest of 2007.
At this stage it has struggled to move higher than this level, and how Friday trades and closes will have a big bearing on next week ( Weekly report tomorrow)
We have seen the November 50% levels support the market, but it has struggled to rise and close above the 3-day highs.
Yesterday's trading was a good 'short' set-up:- a higher open and 'gap' trading.
The movement down closed the gap @ 6468, aligned with a perfect 44 point range and was supported at the Weekly 50% level @ 6477.
Today has all the reason to continue higher...
However:- Today isn't a high probability trade. Friday is opening around the top spiral-points of both Ranges, this is high risk trading to be going long once again around the highs. Ideally if the R87 had completed the lower gap @ 6450 and rising from a lower R87 spiral point then there is more of a reason to be trading longs.
Risk:- 6511 (R44 spiral top)
Above it and expectation is that the market is moving upwards a minimum of 44 points and following the 5-day range and breakout of the 3-day cycle.
Below it and expectation that the Spiral top, along with the December 50% level, and 3-day cycle is pushing the market down once again into the R44 range.
Yesterday I was confident on shorting the market because of the way the 5-day range and 'gap' trading gives traders the high-probability of 'gap-closure.'
Today it's not the case:- it's an each way bet on the direction of the market today.
No major set-up for today.
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