SPI supported above the Quarterly lows @ 5493 , and consoldating around and below the Weekly 50% levels of 5593 and 5668.At the start of this week expectation was that the SPI would move into a higher close by Friday, as it rises upwards from Quarterly lows and a lower Weekly open. We can see US markets moving in a much more orderly fashion upwards, whilst the Australian market is held back by the Banking stocks (the stock report)
The expectation still remains that price is moving higher into Friday...
Today:-Price is opening above the 5-day 50% level @ 5583 and also above the Weekly 50% level @ 5593. The only view I have whilst price is above these levels are:- Price is moving towards the 5-day highs @ 5710
There is going to be a higher open today, normally I would wait until price rotates back down 44 points and use Support/ spiral points to trade upwards.
This might still be the case during the day, but i'm going to define the market by each previous 5-day 50% level....and the Weekly 50% level @ 5593
Above 5593 and price is heading back to 5633:- above 5633 (resistance/break) and expectation that market is moving higher....
If price hits 5633 and stalls, then there is a potential of a 44 point reversal or 'gap' closure, before the market moves higher.
Yesterday I was focusing on trading long positions until the market provided a 'short' trade using 'risk' parameters, and today I will be doing the same. As long as I'm on the right side of the level then I can judge Risk clearly, because even if i'm wrong my stops should be tight.
There is no high probability trading set-up today, it's about day=trading the levels and taking chunks out of the ATR, until it gets above 5633
Today being Valentines day, hopefully the market can show us a little bit of love....
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