Spiral top @ 4146.
Below 4146 has the potential to move back down into the 5-day 50% level @ 4099"
Premium Trader
SPI Weekly and 5-day pattern
SPI moved within the 'spiral' ranges today, but I was expecting higher highs on Wednesday towards 4166 at the start of the day
The bias was to trade longs in early trading towards 4146, once there it became a two pattern play...
either the trend continues up towards Wednesday's highs....
or
follow the Spiral reversal pattern back down 44 points towards the 5-day 50% level.
And we now have a daily close below the 5-day 50% level, and for anyone short, that's the pattern they want to see to confirm a reversal down towards the Weekly 50% level next week.
However, this continuation down needs to see US markets follow the same pattern.
As per the US market Weekly report, I was looking for a 2-day 'stall' pattern around the higher Weekly open, but the 2-day stall pattern hasn't close below their 5-day 50% levels.
That can change on Wednesday, but a 2-day stall above the 5-day 50% level can often send both the DOW and S&P higher on Wednesday.
Note:- I always like to see the R42-44 range close outside the levels, in this case the range has closed inside the level but the daily close is outside the level, which is still bearish
If there is a lower daily open tomorrow, then I would like to see the SPI move back towards the 5-day 50% level and form a higher spiral point and use this as resistance for a continuation down.
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