And if price does continue higher towards October's highs it should push higher in the 3rd week"
Previous Weekly Report
SPI Weekly chart
Exact same pattern as April after the 3-week breakout on the Upside :- Price often reverses down and re-tests the 3-week cycle lows to determine how valid support is.
And so far the Weekly cycle support has been verified @ 4830 with Friday closing above it, but the SPI probably won't continue higher until another 5-days of trading :- 3rd week contract expiry.
But when looking at US markets they couldn't remain supported above their 3-week cycles lows, they actually closed lower, which often favours a continuation down.
http://www.usindexweekly.blogspot.com/
However, I still can't see a major 3-month counter-trend up move like April-May this year until lower prices bottom out in this Quarter.
Therefore if it doesn't go down then it's more sideways price action, which suits me fine.
SPI Daily and 5-day patterns
I'm not concerned where the market goes in the short-term, as long as I trade the 5-day patterns using spiral point trading.
When looking at the bigger picture we make certain conclusions of the trend and where price is likely to go.
We also try and forecast the market in advance because of those same patterns repeating.
Then we try and think in probabilities and find high probability patterns and trade them which fits in with the certain Weekly and 5-day parameters.
As day traders, our job is to find patterns which rotate towards the 50% levels and then thrust outward as the trend continues within the Weekly and Monthly timeframes
The current trends in Index markets are consolidating patterns with little trends. These patterns don't last long because eventually markets will move back into directional trends which last for 2-3 months.
I still have the view that price will continue lower in this quarter but understand that markets don't move in straight lines, they zig-zag towards destinations ;- dynamic support and resistance.
I'm also smart enough to understand the short-term timeframes using the 5-day pattern and adapt to the market, and continue to trade the same daily patterns of rotating and extending patterns within the 5-day range using high probability patterns:- Spiral Points (c)
If you are day-trading the SPI or any other market, it's also imperative to monitor a number of different markets, especially Forex. Because what you see in the SPI, you'll also see in the Euro, AUD, GBP, JYP, DOW, S&P and so on......
- Daily Trading Set-ups & Analysis
