but hopefully with some early selling pressure down using Wednesday’s highs as resistance:- 4791-803
Downside 42 points into 4764"
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SPI Weekly and 5-day pattern
Early rise up into Wednesday's highs and a reversal back down 42 points, closing above 4761.
Today is the first day in a number of weeks that the SPI is above the 3-day cycle highs (4761), with a view that price can continue towards the December highs later this month.
However, based on the 5-day highs Wednesday my expectation was a range bound day to close above the 3-day highs @ 4761
What might happen now with today’s close above 4761 and the change of the 3-day cycle into a BUY is either price is going to continue higher on the back of US markets rising towards the December highs...
or Price is going reverse back down into the monthly 50% levels once again.
Whenever there's a change in the 3-day cycle, price can often move into a 2-day reversal pattern back down to retest support levels and then continue upwards in a new 3-day BUY cycle thereafter.
A 2-day reversal is back down into the December 50% levels over the next 2-days (or even lower depending on the price action in the US markets.
It’s obvious that the SPI is going to be influenced at this stage by the direction the S&P 500 takes:- read S&P (e-mini report below)
S&P direction:- 2-day reversal or continuation towards 1126
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