Resistance:- 3823-30
Random support 3777.
Either Thursday ends up rotating and consolidating between those 2 levels (multi 44 point rotations)
or it breaks 3777 and continues down"
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SPI Weekly and 5-day pattern
SPI opens on support @ 3777 moves up 44 points and then breaks and heads down into the Weekly lows.
The only sad part of today it didn't rise up into 3823-30 to get a decent short for Thursday.
Market's look weak, and will probably continue down into November's lows.
But what about a 'short-covering Rally?
That will depend on US markets having an UP day on Thursday.
Why would US markets have an UP day on Thursday?
Look at the DOW 5-day pattern (chart below).
Yesterday's view was that if price was below the blue filters it would result in a 5-day range breakout.
So what happens on a breakout?
Often price will come back and test the breakout before it continues down once again.
Therefore my ideal pattern in US markets is to push down on Thursday in the 5-day lows, and then reverse upwards late in the day to close near the 5-day 50% level:- Higher daily close
What I don't want to see is a rally on open into the 5-day 50% level and then a sell off back down into Thursday's lows:- not a good sign.
If my ideal scenario of an UP day is, this will hopefully see a higher open on Financials, and hopefully a move back towards their 3-day highs tomorrow.
The 3-day 50% level tomorrow should hopefully be a good idea of a daily trend tomorrow.
Wishful thinking maybe, but if the SPI is opening above 3825 tomorrow, then there is a good chance that some 'gap' closing is going to occur:- rotation back towards next week's 50% level, and then continue down into next Week's weekly lows, which match the November lows.
Lower Daily close in the US and won't be a good sign for Financials, and markets will continue down into November's lows.
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