SPI Weekly and 5-day pattern
Expectation that the SPI would continue up into the August highs @ 4313 and then reverse back to retest the Monthly 50% level in August is now my view.
The first sign of the reversal will be price trading below the 5-day 50% level, but won't be confirmed until there is a 5-day low breakout of the range.
However, I'm not expecting the SPI to reverse back down in 1 week, I’m expecting the SPI to zig-zag its way back down, mainly within 5-day pattern rotations.
Trend guide today was the 5-day 50% level 4258, which price ended up consolidating around, but enough to push the market in precise 21 point waves.
Non farm payroll out tonight which might be enough to push US markets up into August highs on Friday...
A reversal down next week will be dependant on Friday's close, with the target down into the Weekly 50% level....
If Friday closes above August highs, then there is probably a good chance they will move upwards on Monday.
At this stage i'm not bearish in the US because price is trading above support levels in the 5-day pattern at this stage of the day (mid night US time)
For me to get bearish is either US markets to rally into Friday's highs and come back down closing near the 5-day 50% level. This should hopefully set-up a push down from early Monday.
If Friday moves down and not into the 5-day highs once again, I would rather look for a level to short trade on Monday or early next week.
I’m not a screen trader during the day session in the US, so I want to find levels and place limit entries to take positions..
If US markets close above their August highs, which puts the SPI above 4313 on Monday, that reversal back down next week might not eventuate.
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