Depending on where the SPI opens, we have a higher spiral point@ 4269-73
Above 4273 and price is moving towards the 5-day highs @ 4298:- random resistance.
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SPI weekly and 5-day pattern.
SPI moved into the 5-day highs and reversed down today...
There is an expectation that US markets still need to move up and complete their August highs.
Even though I think markets are still heading higher, and could continue higher in August towards 4400, I would begin to look for short-term 'tops' in the market around these levels and a move back down towards the monthly 50% levels.
This pattern is a breakout extend pattern and price moves back down to retest the breakout and 50% level.
If that occurs, then I would want to be looking for 'long' position once again for a move towards 4400+ over the next 2 months.
At this stage it's not the ideal time to go 'GUNHO' into short positions, because there isn't an alignment with a US markets and their July highs, and I would still like to see a Friday close below this level @ 4314, and the Financial Index is still about 100 points shy of their own August highs.
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