SPI Recap……..11:05SPI Rallied 44 points, reversed and is now following the overall Market trend down towards the 3-day lows....
Once price moved back under the Weekly 50% level, price was trading below all higher timeframe 50% levels and continues with the trend down...
Today my set-up was about trading longs on open and with the expectation that price would move upwards into the 5-day 50% level.
I also acknowledged that the higher timeframe 50% levels are the driving force of the trend, and any failure of 5593-6, the market path is to head down towards the 3-day lows.
However the latter wasn’t my high probability pattern.
I entered longs, and using past price patterns, any continued rally upwards price would move up 87 points, with a 2nd high probability pattern on Longs on a R22 reversal….
SPI completed the R44 top, but reversed down back under Support:- 5593-6 (stopped out)
As happens on many occasions, the Resistance or Support will be confirmed with a spiral point, and often this occurs with 22 point ranges and rejection…
If there is a 22 point reversal and rejection under Support, well what’s the next trade if it’s following the higher timeframe Trend???….Either stay out or switch to shorts...
Exit @ 5556….
A down move will probably follow 87 points down from today’s highs...5543
Below:- 5593 and Weekly 50% level and price is moving down into the 3-day lows..
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