SPI Monthly and WeeklyLast Week’s Friday close above the November 50% levels and 3-week lows along with the expectation that the S&P would move higher early in the week set up a 3-day rally.
"Robust swing points to trade longs from lower prices from next Friday. The trend would continue down another week, but then provide support next Friday and for a large 3-day counter-trend rally back upwards the week after that" 31st October
As pointed out during the week, ideally sell a higher Thursday open or exit longs, as there was an expectation that there would be a 2-day pullback into support levels before any potential higher moves in November.
Those support levels aligned with the 5-day 50% level with buying support on Friday and helped by the S&P 500 having an UP day in the US on Friday.
Whilst price is above the support levels and the 3-day cycle the view is to continue towards the November highs.
If there is a daily close below the 3-day cycle low early next week, then the SPI will probably end up drifting lower and remain in a choppy 5-day pattern and then continue higher the week after that.
I can't see any major selling that's going to effect the SPI over the next 5-days.
A major reversal down would have only occured if Thursday's sell day and Friday had close below the Weekly 50% levels. (back into the November 50% levels)
