S&P Weekly and 5-day pattern
Small range day trading below July 50% level resistance and Thursday's support levels.
Last day tomorrow to close out the trading week, and it will be based on whether Friday continues down into a lower Weekly close...
Or for some reason swings back towards next week's 50% level @ 900.
Once again that will depend on Friday's Support (Yellow)
SPI WEEKLY & 5-DAY PATTERN
Expectation the SPI is heading down towards July’s lows @ 3580, whilst price is below the 3rd Quarter and Weekly 50% levels.
Based on the Weekly dynamics, it will probably take another week for the market to move down that far, with a max move this week:- 3647 Weekly lows.
There is also a lower Weekly open (but no support), that could see the SPI back around the Weekly 50% level, depending on the price action in the US.
There is also an expectation that the SPI ‘needs’ to swing back and retest last week’s Thursday 5-day breakout @ 3815.
Around 3757 today was the spiral filter, and below that level was to focus on ‘shorts’ as part of a trend that is currently below the July 50% levels and heading down.
But the 5-day lows @ 3729 supported the SPI today
S&P Weekly and 5-day pattern
Lower Weekly open along with Monthly support (Trend), there is an expectation that a swing back towards Thursday's breakout @ 905 is in play.
First swing is back into the 5-day 50% level, with a potential 2-day swing would take it back into the Weekly 50% level @ 911
Wednesday should provide an ideal pattern if there is going to be more weakness in US markets in July, or the Monthly 50% levels push the markets back above the Weekly 50% level.
Ideal pattern would be a higher Daily open and 'sell' resistance.
SPI Weekly and 5-day pattern
SPI opened below 3770 therefore the first stage of the move was to complete 3749, with then a possibility of a move down into Monday's lows @ 3730-35.
The best short set-ups will need to see the SPI move up and retest those higher timeframe 50% levels (Weekly 50% level) along with higher daily opens:- short trade resistance on a higher Daily open.
And there is still the breakout from Thursday @ 3819 that I want to see retested before the market continues towards July’s lows @ 3580.
However, that will depend on US markets on Monday, because these current 5-day lows on Monday could swing upwards overnight and back towards 3819....
But if US markets continue down, then the ideal short trade set-ups in July to capture the down move might not eventuate, and if that happens then we have to rely on spiral filters to capture some of the moves intra-day, as was the case today.
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