However, based on yesterday’s range 3777-80 is still seen as resistance in early trading, with the expectation price needs to move down to 3747 to complete the first range"
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SPI Weekly and 5-day pattern
Today saw the early sell down from 3780 completing the first range target of 3743-47
A bearish pattern would have continued down towards 3705, but often we see the Spiral lows swing back upwards and retest resistance….
And that’s what has occurred today.
Instead of moving up into the 5-day 50% level early and selling down, we had the opposite:- moving down early and reversing up from the Spiral lows and back into resistance levels late in the day.
The SPI is moving down into the first target @ 3705, with a max move towards the June 50% level @ 3645.
At this stage we should be concentrating on 'short' trading down into these levels...
When the SPI reaches 3705 we begin to look for trades each way, as there could be a swing back up towards next week's Weekly 50% level...
This should be confirmed with price breaking the previous day’s highs along with the cross-over of the 5-day 50% level.
A move down toward 3705 on Wednesday is now dependent on US markets moving lower, which might not occur.
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