Once there is a daily close above the 3-day cycle, then I favour a 2-day reversal back down into the Weekly 50% levels.
Thursday Support 4697-85 "
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SPI Weekly and 5-day pattern
SPI completes the same moves as the S&P with a swing back into the
3-day cycles (Thursday’s highs)
A close above this level today (4763) and it will swing the 3-day
cycle around, and even though I’m bullish in the 4th Quarter I’ll be
looking for any hint of a short-term reversal pattern from tomorrow back into
support levels.
That reversal down will depend on price action in the US around resistance levels.
I wanted to see the S&P 500 close above the 3-day highs @ 1055
(closed above Wednesday), and then look for a short-term
reversal into support levels from the next day (Thursday)
This should hopefully provide another swing support for a
continuation upwards in October and complete the breakout and
extend pattern from July.
However, a lower Weekly open from the 3-week lows
can often continue higher into Friday, as the line of
least resistance from September has disappeared and price is following the
market dynamic in October.
So the short-term reversal pattern that I want to see on Thursday might not happen.
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