SPI MonthlyMAY high Resistance and continue to look for a pullback into the Monthly 50% levels.
I have an expectation of higher prices in the 3rd Quarter, as long as the market remains above the 50% levels.
With 1 week to go until the end of the month, my ideal pattern would be to see the monthly timeframe in MAY close around the 50% levels.
If that's the case then the ideal pattern would be a lower monthly open around support and then have a 4 week trending pattern upwards.
If Support breaks and closes below, then adjust to the market.
The highest probability of a level failing is the last week of the Month, so it's imperative
that MAY doesn't close below support.
SPI Weekly
If there is a lower Day move on Monday but a higher Tuesday close above 3789, this could lead in a Daily HOOK pattern:- HOOK patterns normally lead to higher Friday closes.
Previous Weekly Report
The SPI played the HOOK pattern until Friday, when price opened back under 3789.
With the SPI trading below the Weekly 50% level @ 3800....
Then the bias is to push down towards the Monthly 50% levels.
For those who day-trade the SPI, we can all see the lack of volatility during the day, so the smart thing to do is work on trading 21-40 points moves and take the cash, because the SPI has struggled to move more than 40-44 points each day.
- Daily Trading Set-ups & Analysis
