SPI Trading in below Quarterly support and a 'breakout' of the Weekly channel lows.
Expectation that whilst price is trading below the breakout, price is moving down into 5323.
When we look at the break of the 3-day cycle, and look at the highs of the past 3-days, we can see that there is a large gap towards those highs @ 5713, nearly 300 points higher.
Whenever there is a change of the 3-day cycle traders can't discount a counter-trend move back towards the highs or a 2-day reversal. Last week there was a massive 2-day reversal back down towards the 3-day lows on Thursday and Friday, and that can happen this week also.
Yesterday's trading was based on the 5-day lows @ 5437.
I also modelled that price could consolidate outside the lows but only move in a 44-point range.
Today's trading is going to be based on the same 5-day lows @ 5437.
I also modelled that a higher spiral point using the R44 high would provide a 'short-trade' on Tuesday, with a much better set-up for any 'down-trending' day.....
"Depending on where the market opens tomorrow, but we can use the R44 spiral top tomorrow as a Risk-short and short-trade down following the 5-day ranges:-breakout and follow the 5-day range lower on Tuesday"
Tuesday:- R44 high Spiral top @ 5435 will provide the best 'short' set-up today, with an expectation that price will move down and continue down into a trending day.
Above 5435-5437 and it's heading back towards the 5-day 50% level, as part of the 2-day reversal.
Note:- Interest rate decision will be out this afternoon after 2.30pm, and the market is already factoring in .25% rate rise. How the market acts until that the time of announcment is unknown, but once again keep an eye on timeframe levels and Spiral points along with and 14:36 'buying', after the news comes out.
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