S&P Weekly and 5-day pattern
US markets are reversing down from their March 50% levels.
There was early support on the S&P on Friday pushing upwards, but then reversed down taking out support.
Ideally I would have preferred Friday to have closed higher and then set-up a robust short-trade early next week back down into the 5-day lows and Weekly 50% level.
SPI Weekly and 5-day pattern
Friday closes the Weekly timeframe around the Monthly 50% levels and above the Weekly high Breakout.
Frustrating day on Friday, as the market didn't open high enough or move high enough to provide a spiral top to short trade down, and right on the close the market finally found its spiral low to get at least a 20 point up swing.
It woudn't surprise me to see the market stall and consolidate around these levels for another week until the 2nd quarter begins in April.
SPI Weekly (left) and Financial Index (right).
SPI moves into a 3-day sideway pattern into Friday around the Monthly 50% level.
Any higher moves next week and it’s up towards next week’s highs:- this is valid as it’s Breakout of the Weekly timeframe that normally would extend into the next Weekly timeframe:- break & extend.
If the trend is going to continue higher, it should hopefully align with the 5-day 50% level next week and push towards those highs
However, I do have to factor in that this Monthly 50% level is a valid resistance zone that can see the next 5-days drift down into the Weekly 50% level and into the beginning of the 2nd Quarter.
I’ll simply know that by next week’s 5-day 50% level.
Financial Index closes right on the 50% level, at this stage there is no sign that this will reverse down until the 2nd quarter begins and a new trend originates from the new 50% level.
Weekly report out tomorrow
S&P Weekly and 5-day pattern
HOOK pattern over 765 sent the S&P into the Weekly highs and Monthly 50% level.
These levels have been a major resistance zones, so it will be interesting to see how the next two days unfold.
There is still a Primary Trend that favours a down in the 2nd Quarter, but there is still over 1 week of trading before the 2nd Quarter begins.
And a double Monthly low pattern, as was the case in March can send markets back towards their 3-month highs.
SPI Weekly and 5-day pattern
SPI reversed down on Wednesday from the monthly 50% level @ 3498 and completed a retest of Tuesday's breakout.
Even though the Monthly 50% level is a major resistance level, which could stall price for the rest of this Month (or not)….
Based on the Weekly high breakout this week, I would treat the market as consolidating between both the Monthly 50% level and the Weekly highs for the rest of the week, and move into a 3-day sideways pattern until Friday.
US markets still have further upside in March, so there is still a possbility that there are higher prices, but I personally wouldn't be adding long positions at these levels without some short-term pullback.
You should are already long from March lows and holding with a partial exit around today's highs and keeping an eye on how prices react to these levels and the April 50% levels.
For Day traders it doesn't matter, simply trade the 5-day trend, levels and use the Spiral points.
Trading SPI June contracts from tomorrow.
DOW Weekly and 5-day pattern
Early push down into the 5-day 50% level and back above support....
Sending US markets towards their Tuesday highs, as part of the move towards the Weekly and Monthly 50% levels.
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