Today is simply based on whether the market is either rising up towards 4802
Or moving down towards the monthly lows by Friday
SPI Weekly and Daily range
Sell off from Thursday’s open @ 4773, which also coincides with a break of the Weekly support @ 4772.
The market is now following a larger trend reversal pattern, as described below…
SPI Primary & Secondary cycles, along with the Monthly Range
The SPI has broken support and is following Set-up B or C.
The Price action in February was following Set-up A;- a bounce off the monthly 50% level, and whilst above 4807 in March the bias was to follow the trend towards the 2nd Quarter highs @ 5093-96.
That changed this week, with the market failing to remain above 4807, followed by today's breakout of the Weekly lows @ 4772, and now the continuation down towards the March lows
There are now two larger reversal patterns playing out…
#B) Continues down towards the 2nd quarter 50% level @ 4640-56 finding support
#C) continues down towards 4565 during the current month of March, and opens below 4640-56 in April.
If #C occurs, then there’s a possible 2nd Quarter move down towards the 2011 level @ 4442.
Note:- The S&P continues to remain above support levels, and if it fails to hold support over the coming days, then SET-UP C is likely to play out.
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