SPI Supported around the Quarterly lows and trading around the Weekly 50% level.The expectation this week was a higher close on Friday, or at least a move UP towards the 5-day highs this week @ 5710. (Sycom completed)
The move UP towards the February 50% level is still a probability this month, but it's more likely to happen next week, than any major up move this week, using the head and shoulders pattern on the Weekly timeframe....
Is Friday going to move higher, or is it going to remain flat or even close down on Friday??
Price is opening below the 5-day 50% level @ 5602 and below the Weekly 50% level, therefore it makes it difficult to have a clear cut view on today's overall direction.
There is a lower gap open today and the expectation is that price will try and move upwards towards the gap closure @ 5638 (resistance)
Therefore I want to trade 'longs' , but I don't have any high probability support...
Area of interest is 5583 (previous 5-day 50%), but also i'll be looking for a 22 point fade against the trend before looking for a move up.
Possible patterns today:-
A move higher towards 5638 and it stalls and the market consolidates for the rest of Friday (tight 5-day Weekly pattern)
Moves up to 5638, and then is supported around the 5-day 50% level @ 5602 and then continues upwards (late on Friday)
Moves up 44 points and then heads down on Friday.....
Basically my set-up is only focused on trading the long side early in the day and look for the 44 point completion, and then try and judge the market after that.
Hard day to trade today on open, and it won't surprise me to see the market close near it's lows on Friday either (2nd half of the day).
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