Or a 2nd day reversal can remain flat as part of a 2nd day stall"
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S&P Weekly and 5-day pattern
The normal pattern on any 2-day reversal from a lower Weekly open is to continue towards the Tuesday highs and then reverse back down into the 5-day 50% level on the same day.
This is often based on the line of least resistance within the monthly timeframe.
As we can see the line of least resistance is around 1062, not allowing the 2nd day ‘set-up’ to play out, instead remaining within a 2nd day stall pattern.
Line of least resistance moves higher at the end of Wednesday.
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