The view is that the market will try and close the gap, however it might struggle to rise higher than the Weekly 50% level @ 4542 and also Tuesday’s lows @ 4542.
If below 4507, then trend bias is down into the Weekly levels @ 4468/70
SPI Weekly and Daily range
At the start of the day my view was that it will try and retest the Weekly 50% level and Tuesday’s lows @ 4542, which would have been a resistance zone.
However, we also have a breakout of the daily lows, and also below the weekly 50% level, therefore there’s a trend bias to move down into the Weekly lows @ 4468/70, once the market failed to remain above 4507
And if the market can’t remain above the weekly lows, then the trend will continue down into the July lows.
Trend guide for the rest of the week is the Weekly lows @ 4468/70.
Note:- whilst below it could result in a break and extend pattern into next week's lows
SPI Primary and Monthly cycles
As noted a number of weeks ago, I still had the view that there was a potential lower low pattern in July after an initial up move towards the higher timeframe 50% levels in the last week of the 2nd Quarter.
These BUY zones align with the July lows and also the 3rd Quarterly levels around 4405.
These BUY zones need to be validated with lesser timeframe pattern for a swing back towards 4721 to 4804…
Because a failure to hold these support levels will see the SPI move down towards 4137.
A move down towards 4137 will depend a lot on how the S&P responds to being below 1325, and the 3rd Quarterly level.
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