This is a breakout and extend pattern from Monday.
Expectation 1X42 point reversal down from resistance"
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SPI Weekly and 5-day pattern
Today’s price action was a break and extend pattern from Monday into Tuesday’s highs @ 4784, and then the expectation that price would complete a 1x42 point rotation down and consolidate above support.
Because i'm looking for higher prices this week, my view was only a 1X 42 point reversal down today from Tuesday's highs.
"If price opens above 4756 then the expectation price should push upwards into the highs @ 4777-84"
This pattern played out, completing the R42 spiral top and resistance providing a higher probability short-term reversal.
Monday was the start of a 3-day rally this week, and if I'm right this rally should continue into a higher Thursday open and trading around November highs.
If not, and price is opening below the Weekly 50% level tomorrow, then there is a pullback into the 3-day cycle lows, which matches the November 50% level.
I'm not expecting that to happen overnight, but it depends on how US markets respond to their November highs on Tuesday.
Eventually price will c0me back and retest the 5-day high breakout from Monday, and matching 5-day 50% level, and hopefully that occurs from higher prices on Thursday and not overnight.
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