the SPI is opening around the Weekly highs and the Quarterly 50% level @ 4761
A pullback is towards support @ 4687.
However, the trend guide is 4744 today, and whilst price is above this level the expectation is that price is continuing higher on Thursday"
SPI Weekly and Daily range.
Early resistance and sell off from today’s highs @ 4761, but afternoon buying after 3pm propped the market once above 4744.
Expectation of a pullback is towards the Monthly 50% level.
Is the SPI going to go higher or it is going to reverse back down into the March 50% level? There is nothing to suggest either way other than it has hit resistance during this week.
If that down move is going to occur it will happen based on US markets moving lower on Thursday and not higher.
If I look at the S&P 500 I would think it was going higher. It’s above all the 50% levels and moving dynamically within the Weekly range towards the March highs @ 1152.
However, whenever the S&P consolidates above the Daily 50% level for the first 3 days and can’t break resistance (Weekly highs) alarm bells begin to ring.
Often a short-term bear pattern occurs with a break of the 5-day 50% level on Thursday @ 1111
Because the market is regressive and range bound within a 5-day range, this can often push the S&P back into the 5-day lows on Thursday, and I have seen on occasions these lows fail to hold support on Thursday and break lower
Therefore if long the SPI you don’t want to see the S&P 500 trading below 1111 in the short term…
If short the S&P (weekly highs), then the interest is in the 5-day 50% level on Thursday and price trading below it.
If long the S&P then you want it to remain above 1111 with a bias towards 1131+
If day trading the S&P then the key level is 1111 and focus on 4 & 8 & 14-point range movements.
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