"Single Yearly 50% level support @ 4455 last week and now trading back above the 3-week lows and the 3-month 50% levels.
If the SPI is going to go higher it will need to be breaking out the Monday high @ 4632: break and extend pattern into Tuesday high"
Premium Trader
SPI Weekly and 5-day pattern
5-day high breakout and the expectation is that price should continue upwards overnight and open higher on Tuesday, as long as the S&P 500 remains above 1063.
At the start of the day I expected the SPI to move up into 4630, because of the spiral filter pattern.
However, around 4630 it was a random pattern, as I didn’t know whether the SPI would breakout or reverse back down into 4577.
This is based on the 5-day high & the higher Weekly open (resistance & below the Weekly 50% level), and also last Friday's change of the 3-day cycle, which often has a 1-day reversal pattern into support (4577).
As mentioned in the US Weekly report on the 31st October….
"Robust swing points to trade longs from lower prices from next Friday. The trend would continue down another week, but then provide support next Friday and for a large 3-day counter-trend rally back upwards the week after that"...
There wasn’t a lower Friday close but a higher Friday close (last week), and the large 3-day rally began and verified with today's breakout above 4632.
It was just a matter of getting into the trend (breakout) and understanding the market structure and this week’s trading.
The continuation upwards into Tuesday's high is now up to the price action in the S&P 500.(read US Weekly report)
And a 3-day rally will take it towards the November highs.
Index Futures SPI, DOW S&P, & Forex
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If the SPI is going to go higher it will need to be breaking out the Monday high @ 4632: break and extend pattern into Tuesday high"
Premium Trader
SPI Weekly and 5-day pattern
5-day high breakout and the expectation is that price should continue upwards overnight and open higher on Tuesday, as long as the S&P 500 remains above 1063.
At the start of the day I expected the SPI to move up into 4630, because of the spiral filter pattern.
However, around 4630 it was a random pattern, as I didn’t know whether the SPI would breakout or reverse back down into 4577.
This is based on the 5-day high & the higher Weekly open (resistance & below the Weekly 50% level), and also last Friday's change of the 3-day cycle, which often has a 1-day reversal pattern into support (4577).
As mentioned in the US Weekly report on the 31st October….
"Robust swing points to trade longs from lower prices from next Friday. The trend would continue down another week, but then provide support next Friday and for a large 3-day counter-trend rally back upwards the week after that"...
There wasn’t a lower Friday close but a higher Friday close (last week), and the large 3-day rally began and verified with today's breakout above 4632.
It was just a matter of getting into the trend (breakout) and understanding the market structure and this week’s trading.
The continuation upwards into Tuesday's high is now up to the price action in the S&P 500.(read US Weekly report)
And a 3-day rally will take it towards the November highs.
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