We have a break and extend pattern from Tuesday down into Wednesday's low (resistance 4764)
Random support 4728 (spiral low)"
SPI Weekly and 5-day pattern
SPI opens below the Weekly 50% level, and there is a breakout of Tuesday’s lows @ 4794 so there is an expectation that Wednesday will continue down into the lows:- break and extend pattern.
first sign of the reversal pattern was yesterday's 5-day breakout, and 2nd sign was the confirmation of price below the weekly 50% level (Today)
There was a spiral filter level @ 4728, and often those spiral lows can provide a swing zone for a rotation upwards 42 points and then continue down overnight.
However, there are certain weeks in every 3-month cycle that the market will trend and not intra-day swing, and this week is one of those:- last week reversal pattern back towards the monthly 50% level following the line of least resistance in the higher timeframes.
October high reversal pattern and break of the Weekly 50% levels
SPI Monthly and Weekly
SPI continues with the reversal down after completing the 3-month cycle breakout pattern from July into October.
I expected more weakness in US markets on Tuesday, and for the SPI to already be trading around the 3-week lows by Wednesday and heading lower by Friday.
Hopefully the S&P continues down and provides the trending pattern that I expected yesterday, and not remain inside the 5-day range and more rotation until November.
I want price to drop as far as possible this week so the volatility comes back into the market and provides more ideal swing trading.
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