Whilst above 4855, the expectation price is moving up towards the first R21 range @ 4874.
Around this level becomes tricky, because the SPI might move into another consolidation pattern until afternoon trading."
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SPI Weekly and 5-day pattern
Friday was the first day to open above the 5-day filters so the expectation was to continue towards the Friday highs @ 4884.
However, as pointed out in the morning report, the initial move was towards 4874, and once that completed, either the SPI was going to consolidate (higher daily small range day), or continue with the 5-day pattern towards 4884.
SPI choose to do the latter and remain in a tight range day and drift down towards support @ 4847
Same patterns in the US markets with intra-day swing trading within the 5-day patterns.
Today being Friday there are 3 options based on the Weekly close
1. Friday closes higher
2. Friday closes in the middle of the 5-day range
3. Friday continues to rotate and moves down into a lower Friday close.
Because the markets are already trading around October resistance levels I would prefer to trade options 2 & 3 rather than 1.
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