SPI will be opening above the 3-day high (BUY cycle) and the Weekly 50% level @ 5766, this normally is the first sign that a bottom is in place.
In a Yearly Bull trend we would normally look for the market to move back above the Monthly 50% levels and then head back towards the 3-month highs. However in 2008 it's different and the only expectation at this stage is a rotation back towards the February 50% level...
Today:- expectation that price is heading back into the break of the 5766-71, before any UP move continues into February 50% level.
Risk is Gap :- 5845
Normally I would look at the gap as resistance and trade down towards the 3-day high break @ 5771
Above 5845 and expectation is that price will be moving into an R44 spiral top, and back towards the 5-day highs @ 5875....
Note:- The Market is trying to move UP towards the January lows @ 6007, and towards the 50% level of February. Ideally I would like to see a down move before it head upwards, than a market that continues higher this week without re-testing the Weekly 50% level. ...
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