SPI monthly
SPI continues to consolidate over the past couple of weeks around the September high levels.
There is an expectation that price will continue towards the October
highs based on the breakout and extend pattern from July:- break
in the 3-month cycles will normally continue to move towards the highs in the
next 3-month cycle:- October/November.
Along the way I like to have preferred patterns to trade the larger cycles,
my first preferred pattern was the Yearly 50% level @ 4455 to resist
price and then trade longs from the monthly 50% level for the next
move upwards.
However that didn’t occur, and once above 4455 at the end of August
the trend was going higher, helped by the S&P moving into it’s own
Yearly 50% levels which was lagging at the time.
Capturing the rest of the trend is based on the smaller thrust patterns
using the weekly 50% levels and Weekly open strategies, helped by
set-ups within the S&P 500
And the same applies in the 4th quarter.
Expectation of a higher move to complete the break and extend pattern
from July, but as pointed out in the Premium Report, my preferred pattern is
to see a ‘dip’ early in October and retest the 3-week lows.
A dip doesn't have to be large, I would just like to see a retest of the
3-week lows which 4442 and around the Yearly 50% level for the next move upwards.
However, it will be based on the price action in the S&P 500 over the next 3 -days.
Read US market report.
