Morning Report 8:30….
Yesterday’s view was that the SPI would come down and test 5548 (3-day high break) before it could continue higher.
On the flip side, there is still a large gap to the 3-day lows @ 5374, therefore there is also the potential that there could be a 2nd ‘stalling’ day on Friday, which often occurs when there is a break of the 3-day cycles :- 2-day stall-reversal before the trend continues.
Therefore short trading around the R44 highs is warranted, but it's high risk to be short-trading above the Spiral Filter...
But if price is moving down from a higher Spiral point then the expectation is that the rest of the trading day is moving back down towards 5530….
Morning report…10:10…
Price has pushed down and trading below 5530.....
This is following a 2-day reversal pattern, which now has a random outcome, it can follow a trending day down into 5498 (5-day 50% level , and it can continue back towards the 3-day lows....
Whilst below 5530 is can travel any length on Friday....High Risk trading longs below 5530….
Rejection of the April 50% level @ 5615 and potential 2-day reversal into the 3-day lows @ 5374
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