SPI futures and 5-day pattern
SPI Weekly and 5-day pattern
SPI continues to 'hug' the August highs and not continue down into the Weekly 50% level.
There was a robust pattern around 4276 to sell off, as it was below dynamic support levels but price continued up into 4313 once again and stalled.
I haven't changed my view that the SPI will move lower, and if it continue over the next 5 days like this and remain in a very tight 5-day pattern, then I'll look for next week to move down into the 50% levels.
SPI monthly and 5-day pattern
Early sell down on open but price couldn't remain below 4253, instead late buying has pushed the SPI back into the monthly highs and Tuesday's highs.
After a higher Weekly open and yesterday's sell pattern from the 5-day highs I was expecting more weakness.
All previous reversals in April, MAY, and June began from monthly high resistance, a higher weekly open and all reversed down from the 5-day highs.
Even the start of July started from a higher Weekly open and the 5-day high, pushing the first week downward before the price rally and 3rd Quarter UP move.
This week was no different & Monday highs @ 4307 set-up the move for a continuation down towards the 5-day lows, as part of a monthly reversal before the trend continued higher in the 3rd quarter.
Instead price bounced off the channel lows @ 4251 and once the R42 closed back above 4279, the bias was to follow the 5-day pattern into the highs once again @ 4318.
Depending on US markets:- Yearly target could be reached this week, which is a bummer.
S&P Weekly and 5-day pattern
Choppy trading day on Monday & small range day.
I expected more weakness on Monday or at least a lower daily close below the 5-day 50% level.
At this stage My view hasn't changed, but it looks like US markets could consolidate until the FED meets later this week.
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