SPI Weekly and 5-day pattern
Choppy trading day today and the market remained in a tight 43 point range, rising up and hitting a spiral top.
Even though I'm looking for weakness around these MAY highs, until there is a break and close below 3842, then nothing is confirmed
Weekly Report out tomorrow
SPI Weekly and 5-day pattern
SPI reaches the MAY highs @ 3950, mathced with a day session 5-day high @ 3950
Expectation of a reversal down from these levels, but it needs weakness in US markets.
US markets are reaching their MAY highs today
The first sign that this is a top in the market is when the SPI breaks 3842 and closes below
SPI Weekly and Daily
SPI Trading around the Monthly highs.
Around these highs there is an expectation of resistance and a rotation back down towards 3740
Today's price action of a reversal down on Wednesday and into support is part of a normal pattern that often occurs.
Whenever there is a breakout of the 5-day high (Monday @ 3849), more often than not price will reverse back into the break, and validate the break and then continue with the Trend...
in this case higher
If the market is going to continue higher then 3844 is the level or higher open.
But because price is already near the Monthly highs in MAY:- 2 -month wave pattern... (3967)
You need to ask yourself.... how much more can the SPI continue higher in MAY.
If this pattern was occurring in the first month and just above the Monthly 50% level, then you are going to have more bang for your buck buying this level.
US markets are still short of their MAY highs.
S&P Weekly and 5-day pattern
Small range day on Tuesday with US markets trading around their Weekly highs, but not reversing down due to Monday's breakout of the range.
SPI Weekly and 5-day pattern
SPI opens higher and sells down into Random support @ 3870.
I did expect more weakness today, but that could only be confirmed with a break of 3870.
Looking at price action, it wouldn't surprise me to see a 5-day pattern that consolidates this week above the Weekly highs of 3868.
However, a break below the channel lows and then the expectation changes to a move back down towards 3740
SPI Weekly and 5-day pattern
SPI kicked up higher this week, as it follows the Monthly timeframes higher.
April resistance disappeared and has dynamically moved higher in MAY
Even though I modelled higher prices in MAY, I didn't expect the move to occur in 1 single trading day.
But I did expect price to move higher if price had closed above 3535, another 44 point range upwards.
SPI back around the highs:- 3891 is the equivalent of 3778 in April.
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