US markets pushed down on Tuesday, which is part of a bearish pattern even though there was a short-covering rally late in day. The potential for further weakness this week still part of the Weekly expectation whilst price remains below the Weekly 50% levels. (US report later)
The SPI is currently range bound below the weekly 50% level and above the Quarterly support, and until the SPI breaks the 3-day lows then it's more rotation between timeframe levels.
Today:- Yesterday's resistance-sell zone swings down from 5654 and in 5578.....Support 5578:-
Two scenarios:- and it depends on where the market opens today, because that support level is only formed if price moves down and completes the R44 range from yesterday...
1. Moves down into 5578 and swings up from 5578 which matches an R44 spiral bottom and heads towards 5620....a breakout above 5620 and my view we have a trending day upwards with the target the Weekly 50% level @ 5685, and as high as the 5-day highs.
If trading above 5620 and there is an R44 reversal low look for late Buying around the last 100 mins of trading...
Scenario 2. Pushes down from 5620 and into 5578, but then just keeps on going down into another R44 lows around 5536, with the potential of further weakness in the 2nd half of the day..
Therefore levels of interests are:- minor resistance around 5620
Important support level of 5578..... and Risk trading.
Note: Can't disregard 5578 pushing down with the expectation that US markets are going to move down
Posts
