What that means is... if price moves up and then is trading below 4793 then the expectation is a 42 point down move @ 4759, which aligns with the Weekly highs (support)"
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SPI Weekly and 5-day pattern
After yesterday’s price action and close above the 3-day high @ 4768, there was an expectation that price can move into a 2-day reversal pattern.
Normally I would look for Set-up A to play-out and then move into
Set-up B from next week with the view that market would continue higher in the 4th Quarter.
However, because of the position of the Weekly highs @ 4759 there was a view that price was more likely to remain above this level today, compared to if the same 3-day cycle occurred and the market dynamic of the 3-week highs were different (above)
The SPI remained above 4759 for most of the trading day until the market closed and after market trades pushed down SPI lower into the close.
Set-up A into SET-UP B will now depend on US markets on Friday, because of the same 3-day cycle pattern and set-ups.
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