The only thing now is for price is move above the 5-day 50% level.
Yesterday's 5-day lows supported price, moved up to retest Monday's Breakout and then got sold down into the close.
If there is going to be a higher move today then Support needs to hold and a HOOK pattern needs to occur above the 5-day 50% level for a move upwards"
SPI Weekly and 5-day pattern.
Start of the new Quarter and new Month and I'm bullish with the expectation price will continue higher.
Today followed the same pattern as yesterday, finding support around the 5-day lows, but this time there wasn't a follow on with a break, instead price rotated around between the levels in a choppy and small range day.
Why I'm a bullish in the short-term?
It's trading above all higher timeframe 50% levels, but more importantly it has been trading and has closed above the previous 'single' Monthly timeframe high in March.
Because of this I subscribe to a Breakout and extend pattern at the start of this Month towards higher highs.
However, when we look at the US markets ( DOW and S&P) , there isn't any bullish patterns, price action has simply rotate back into the Monthly 50% levels and stall, and are now trading below the April 50% level.
The SPI needs to be trading below 3495-3502 to be in the same trend (Support)
Therefore, the only thing now for the SPI too move higher is a move above the 5-day 50% level and a breakout of the channel high on Thursday.
Even though I'm bullish in the short-term, I'm actually bearish in the 2nd Quarter, but I would like to see the SPI make a slight higher higher before reversing back down.
If there was going to be a higher move today then Support @ 3582 needed to hold and a HOOK pattern above the 5-day 50% level for a move upwards.
That pattern did play out reversing down from 3607 into 3582 but the buying didn't appear to send the SPI higher.
Note:- Below the 5-day lows and we need to subscribe to the fact that Monday's break and Yesterday's retest of the break and today's failure to continue higher can lead to a move down towards the higher timeframe support zones 3495-3502
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