The market is still in a 3-day Sell cycle (below 4907), so at this stage I don't know whether this is just a short-term up move from a lower Weekly open and the trend continues down.
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SPI Weekly and Daily pattern
I’m currently bearish on the markets and yesterday’s price action should have remained below 4871.
I also understand that Weekly 50% level support will normally begin with a 1-2 day counter-trend move (yesterday) at the start of the new week.
What looked like a short-term long set-up for many, has now turned into a retest of the 3-day cycle (‘sell @ 4907) and a break of key levels once again, which helps match my original view.
The SPI opened above keys levels on Tuesday so for a brief moment the price action wasn't matching my overall view of the market, but then the market got rejected on the 3-day Sell cycle high @ 4907 and the rest is history.
To validate any reversal pattern and continuation down price needs to break support (weekly lows), which normally only happens overnight in sycom.
However, there are no leads in the S&P because of the public holiday to help confirm my view, as price has moved up from Weekly 50% level support during Globex hour on Monday.
However, during Globex hours on Tuesday prices have come down, and that is a little thing that can lead into a big thing on Tuesday, as per Weekly report.
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