This week’s Modeling:-
2-day reversal down into Weekly 50% levels and Support.
Wednesday UP day and Thursday ‘sell’ Day….
The first two have played out, and now we have come to Thursday’s ‘Sell’ Day.
There is a big difference ‘short’ selling UP trending markets compared to down-trending markets.
In UP trending markets the best 'shorts' normally occur in the first part of the trading week as price rotates back down into trailing 3-day lows, ( or gap opens). And the latter part of the week price tries to move UPward ( higher closes on Friday) as it follows the weekly trend.
The Weekly trend is defined by the Weekly 50% level, which has verified support this week, and now we can see the DOW close above the December 50% level.
Today:- Thursday is still a ‘sell’ day, and I would expect some selling pressure before the market tries to rise higher, as what occurred in the SPI today.
Keep in mind a selling day has a random length.
Respect the December 50% levels today…. Above and Thursday is heading towards the 5-day highs.
Below and the 5-day 50% level is the expected rotation zone, which could support the market, but if it’s a selling day and it does move down then the previous 5-day 50% level would be the target.
And As I’ve mentioned before, the closer it comes to expiry the more the market will try and rise because the future contracts are running at a premium.
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