Trend guide 4959 (Tuesday’s high)
SPI Weekly and Daily range
SPI opened higher and sold down from 4975 but failed to follow a lower daily close, as price remained above the Tuesday’s breakout @ 4759, and with the potential to move towards Wednesday’s highs tomorrow.
I do have a view of higher prices in the 2nd Quarter towards 5170, but I personally wouldn’t want to be buying into the market when it’s already around the highs at the start of a new cycle, and also the completion of the break & extend pattern Today
It’s the start of a new cycle so I want to use support levels during this 3-month period,and I would need to see the SPI rotate back towards the monthly 50% levels (3-week lows).
It might take 4-6 weeks until price slowly unwinds towards support levels, but I’m patient when trading stocks.
The only way a rotation is going to continue down in the short-term is if the S&P follows the same price action from 1185 and begins to slowly unwind towards 1164 and not continue to push up towards the April highs
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