or continues to remain in a 5-day consolidating pattern, and drifting down into the Weekly 50% level by Friday.
Depends on where the SPI opens, the closer price opens to 4766 (trend guide) the bias is to move up towards 4787
Resistance 4792"
Premium Trader
SPI Weekly and 5-day pattern
There are two patterns taking place this week in the trend.
1. price is rising towards the November highs
2. As pointed out previously, a 5-day consolidating pattern with a bias to drift down into a lower Friday close.
This morning’s set-up was based on rising upwards from 4766 to complete the Spiral range @ 4787.
Once price had completed the move, then it was simply a case of understanding the price action:- either price continues towards Wednesday’s highs
Or price hits resistance and reverses down as part the consolidating 5-day pattern into support.
Today was simply trying to take small chunks out of what the market was trying to do, and keeping out of trouble.
At this stage the SPI continues to remain in an UP trend but in a sideways pattern.
In last week’s US report…..
"Even though there is an expectation that price can continue higher, that might not happen next week, as there is a possibility of another 5-day sideways pattern.
The most robust pattern for any higher moves towards would be a choppy 5-day sideways pattern with the bias to drift down into the weekly 50% levels by next Friday...
And then continue higher the week after that using support"
What we are seeing is the SPI follow that price action, remaining in a tight sideways 5-day pattern, whilst US markets continue to rise.
Normally next Monday would open around the Weekly 50% levels and then continue higher using Support nito November highs and then December's highs:- 2-month wave pattern within the new 3-month cycle.
However, it’s the price action in the S&P that’s going to dictate whether the SPI follows another move upwards next week, because the S&P is now nearing my upper 4th Quarter targets.
If we starting seeing the S&P 500 moving down and the SPI below the weekly 50% levels, I’d be extremely careful with any long positions coming into the last month of the year.
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