SPI monthly and Weekly
Last week's view was based on the S&P 500 dropping with a Monday high set-up and a Tuesday trending down day, as part of SET-UP A
At the start of October if you recall, my expectation was a short term pullback into the 3-week lows for support and for a move upwards in October to complete the 3-month cycle tops as part of the breakout pattern from July and into October.
This played out precisely.
Once the 3-monthly cycle was completed (October highs), these 3-week lows are first target pullback zones, with SET-UP A favouring a move back down into the monthly 50% levels.
There might not be a Set-up A in the S&P 500, but there was in the Australian markets.
Resistance as shown...
There might be lower swing points for a short-term counter-trend moves from lower prices next week around the October 50% levels back into resistance levels.
But how it reacts to the resistance levels is important, because a failure can follow the market dynamics down into November lows.
Above resistance, (week close) and the 4th Quarter will probably remain range bound and consolidate until the end of the Year.
