SPI opening lower around very important levels in the market, both the Quarterly 50% level and Yearly Balance point.
We have seen US markets fail their Yearly Balance points, and have trending down days, and it's going to be a very important support zone today.
Today we have Gap trading....
It is the first time since November that there are gaps in the market using the Primary Range 87 points. This favours upside trading, with two gaps to be filled @ 6295 and 6324 (maybe tomorrow)
When traders look at the December drop last month, they would naturally think there are gaps on the downside, but when you reference the R87 range there wasn't any gaps, it was continuous 'selling' down from each Spiral point. (Described in the book)
Today is the first Gap since November and I favour trading longs.
Support 6238-46
Intra-day Resistance 6295 (44 points upside)
I won't be trading longs below 6238 if there is any sustained selling today....
Note: Price action is currently following the Dilernia Principle of a 2-monthly wave pattern lower.
The SPI hasn't been below the Yearly balance point since 2003, and it hasn't come close to this level in nearly 5 years, so it's an important level and trend guide...
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