"Based on my view on the SPI, this higher daily open on Thursday is part of a 2-day reversal pattern down into support:- 5-day 50% level.
Resistance 4800-805."
Premium Trader
SPI Weekly and 5-day pattern
Expectation that the SPI would begin to slowly unwind and move back down towards the 5-day 50% levels over the next 2-days.
As per Monday’s Premium Report... “If I’m right this up leg should continue into a higher Daily open on Thursday where I’ll exit my stocks:- Sell open on Thursday"
There was an expectation that price would push up into 4800 and then reverse back down and continue down for most of the day.
This early push down from 4800 i 4775 matched the first R42 reversal pattern in the 24 hour market.
At 11:30 unemployment figures came out kicking the SPI upwards into 4805, and then it once again began to drift back down, and continuing down as part of the reversal pattern.
At this stage this is viewed as a 2-day reversal pattern back down into Weekly 50% level support levels.
If the market is going to go higher, then next week's open should align with support.
If the SPI is opening below 4615 next week, then there is probably more weakness to come depending on the price action in the S&P 500
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