SPI Monthly and 5-day patternThe SPI is currently trading below the December 50% levels and with the bias to continue down, however there isn’t any weakness in US markets to help validated the next leg down.
At this stage the market continues to consolidate within the 5-day range and rotating 42 points on most days.
Any continuation of the trend down, or any reversal of the trend upwards needs to be validated by a breakout of the 5-day range, and we can currently see the creeping upwards of the 5-day filters (blue).
Today:- before the market opened I was bearish because of yesterday’s price action and opening around the 5-day 50% level, as I'm trading the current trend with a downward bias.
I wasn’t keen on longs simply because of the higher timeframe patterns even though a R42 low and 5-day 50% level @ 4651 can often provide a perfect move in the market (UP), but when optimising the pattern to the trend it wasn't a high probability set-up for today.
Around the highs @ 4687-90, my expectation once again was a rotation back towards the 50% levels, as price was hitting the December 50% level, the 5-day channel and the R42 high (4687-90)
- Daily Trading Set-ups & Analysis
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