There are 2 patterns at play on Wednesday...
1. price sells down into the 5-day lows & break as part of the August high reversal pattern.
2. Wednesday's 5-day lows find support and swing back up into a higher daily close
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S&P Weekly and 5-day pattern
Early move down into the 5-day lows and a reversal and higher Daily close.
That down move and reversal upwards was part of a 2-day pattern play but I must admit I was surprise by the extent of the reversal upwards.
August highs continue to resist price from rising...
The rest of this week is either going to continue to consolidate in a tight 5-day pattern and the next two days remain range bound.
If this happens then I'm looking for next week to sell down into the Weekly 50% level.
So far, this week has see a higher Weekly open and a 2-day reversal down into the 5-day lows.
A 3rd Day UP move from the 5-day lows and back above the 5-day 50% level.
If this pattern was occuring anywhere else I would favour Thursday and Friday to continue higher, and that's still a possibility.
However, because of the August high resistance levels it makes that higher weekly close all that harder.
Thursday's 5-day 50% level will be the trend guide on any further rises or consolidation
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