Whenever a Friday high reversal pattern occurs I immediately factor in a 2-day reversal pattern.
Break of channel @ 4896, first target @ 4870, 2nd target at 4858"
SPI monthly & daily highs
Expectation today was a short-term target @ 4870, & with a downward bias of 42 points.
Once price travels a distance of 42 points (@ 4858) from highs to lows often the market can reverse back towards the channels.
The rotation back towards the highs wasn’t part of my view on Friday, but I acknowledge the larger cycles in the market and the probable patterns as described below….
#1) 4917 resists price and drifts down towards the April 50% level over the next couple of weeks
#2) the trend continues higher in April once the next month begins and the resistance disappears.
Upside Target in the 2nd Quarter is 5100+
If there’s going to be a 2nd down day in the SPI that means the S&P 500 needs to continue the reversal pattern (read report below)....
And that’s not a probability pattern for Friday as price is currently above support.
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