Dilernia Principles:- Monthly support (Nov 50%) and moves higher using the December 50% level as Support:- 2-month wave pattern upwards.
The weekly trend has found and verified major support using the monthly 50% level, but the Weekly cycle is still a ‘SELL’, it will only change once Friday closes above the 3-week highs @ 6647.
(previous Weekly Report)
This week has seen the market reverse down 2-days at the start of the weekly timeframe, verify support (Wednesday BUY day) and then continue higher closing above the 3-week cycle highs @ 6647, with the expectation that markets are moving towards the December highs.
A breakout above 6647 this week and the expectation that it will remain above this level for the rest of the week and month as it moves higher.
Below 6647 (3-week cycle high:- resistance) and expectation market is coming back into Daily 'gap' closure before heading higher.
The longer is remains below 6647 next week, the probability that the trading week has the potential to close on it's lows, before rising upwards at the start of the following week:- week of contract expiry and trading longs from near the 5-day lows.
The Weekly Trend was rising this week, but 3 out of those 5 days, day-traders were shorting the market (higher opens) using 'Spiral-Points' and high probability RISK levels:- Monday, Thursday and Friday.
Above is the Daily SPI chart:- rotating down from October highs into November 50% levels and moving higher from the next monthly 50% level, December.
The expectation is that the market is moving higher in December.
What you notice in the chart is how the trend is clearly defined by the 3-day cycles.
What you also notice is the trend of the Weekly timeframe range being defined by the weekly channels. (green)
Around the extremes of the channels and expectation market will rotate back towards the 3-day cycle, and around the middle of the range price follows the market path once again.
Next week the market path is mapped out to move towards 6735.
Ideally, the best and most profitable trading set-up would once again follow the market down into support and then rise higher as it chases the next level.
The best set-up for this to happen is a 2-day reversal into the trailing 3-day lows and then follow the exact same set-up next week, as last week.
A rise upwards on Monday would be towards 6735, over a couple of days before the most probable reversal back into the 3-day lows.
In Conclusion:- Market is rising higher, expectation market is moving towards the Weekly channels highs, with the best possible trade from lower prices:- ideally around higher timeframe support or 5-day lows.
6647:- Weekly trend guide for next week
For Daily analysis please read the daily report 'the trader trading'
