As already pointed out, the ideal pattern for any higher moves in the market would be for the SPI to move back down into the 5-day 50% level and lower channels"
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SPI Weekly and 5-day pattern
Friday closes the Weekly timeframe around the Monthly 50% levels and above the Weekly high Breakout.
Frustrating day on Friday, as the market didn't open high enough or move high enough to provide a spiral top to short trade down, and right on the close the market finally found its spiral low to get at least a 20 point up swing.
It woudn't surprise me to see the market stall and consolidate around these levels for another week until the 2nd quarter begins in April.
SPI Weekly (left) and Financial Index (right).
SPI moves into a 3-day sideway pattern into Friday around the Monthly 50% level.
Any higher moves next week and it’s up towards next week’s highs:- this is valid as it’s Breakout of the Weekly timeframe that normally would extend into the next Weekly timeframe:- break & extend.
If the trend is going to continue higher, it should hopefully align with the 5-day 50% level next week and push towards those highs
However, I do have to factor in that this Monthly 50% level is a valid resistance zone that can see the next 5-days drift down into the Weekly 50% level and into the beginning of the 2nd Quarter.
I’ll simply know that by next week’s 5-day 50% level.
Financial Index closes right on the 50% level, at this stage there is no sign that this will reverse down until the 2nd quarter begins and a new trend originates from the new 50% level.
Weekly report out tomorrow
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