DOW Weekly and 5-day pattern
Tight 5-day pattern this week, saw Friday sell down into Friday's lows....
Reverse, and once above the Yellow support the bias was to continue higher into Friday, as it follows the Weekly bias of closing higher into Friday.
SPI Weekly and 5-day pattern
Higher open due to US markets up move on Wednesday and my expectation that whilst price was above the 5-day 50% level the market was moving higher into Friday.
Once back below the 5-day 50% level, the market was once again following the overall trend down.
As mentioned in the US market recap below, the daily HOOK over the Weekly 50% level on the DOW can send the market higher into Friday.
However, the S&P failed to HOOK over the Weekly 50% level, and along with two inside days within Monday's overall trading range, US markets can easily follow a 2-day down move on a break of support on Thursday.
Basically Thursday's support will determine the trend over the next two days, as it follows the 5-day dynamic range outward.
SPI Weekly and 5-day pattern
Expectation of lower prices in December, and Wednesday's trading in the SPI today played out near precise...
Early rise into the 5-day 50% level @ 3632 and reverse down from a R44 high
3x44 bars down, 3x44 bars up, and another rotation downward into the close.
If US markets move lower on Wednesday, which is what I have modelled, then the SPI should be opening around Thursday's lows tomorrow, if not lower.
SPI Weekly and 5-day pattern
Overall trend is to continue down towards the Weekly and monthly lows in December, and as expected once price moved up into the rate announcement @ 3626.....
Price would probably reverse back down, as it follows the bear-trend, and a double Monthly low pattern in December...
S&P Weekly and 5-day pattern
Expectation that the first two days this week would reverse down, but Monday has moved a lot further than I expected for 1 day to move, as it breaks the 5-day lows...
Once support on Monday broke the trading length was random, and in this case resulting in a trending day downwards.
However the price is simply part of the larger timeframe analysis and what I expected to occur this month, as my view is that markets are moving down into lower lows in December.
SPI Weekly and 5-day pattern
Being a higher Weekly open and trading below 3758, there was a bias to continue down early today.
This is part of a 2-day 'stall' pattern, with the expectation to pull back into the 5-day 50% level.
At this stage I favour lower prices this month, but with tomorrow's Reserve meeting and expected rate cut, this could put a rocket in the market to continue towards the December 50% level.
If US markets move lower on Monday, and the SPI is trading below 3618 tomorrow, then regardless of any rate cut, the SPI will probably begin to move lower after any rate announcement.
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