SPI Weekly ChartThe reversal upwards from March lows and the higher move on Tuesday has pushed price back into the 3-Weekly cycle highs @ 5464.
In 'Bear' Markets price won't spend much time above 5464, and the failure around that high yesterday is an important level and reference point.
5464 could end up being a major resistance level for many weeks, and that will only change once there is a 'friday' close above that level.
SPI Weekly charts 2002-2003Above is the Weekly charts in the last down-trend in 2002-2003, and we can see how important the Weekly cycles are in defining the overall trend of the market....
And it was until 2003 (double Yearly low pattern) that the Weekly cycles defined the UP trend reversal.
If and when price closes above 5464 on a 'Friday', only then we can look at the market in a different light, but at this stage I still favour global markets are heading lower in each Quarterly timeframe.
SPI Daily and intra-day chartsIn Yesterday' s report I mentioned I would like to see the SPI reverse back down and move lower into the April balance point next week for the next UP trend to eventuate.
If this is going to play out then price should be moving lower today, and the Risk level of the DOWN move is 5417.
Below 5417 and price is moving down, with a 'max' move back towards the 5-day 50% level.
However the previous Weekly 50% level @ 5335 could end up playing a 'support' role today.
Today is simply defined by 5417
Will open at a lower Spiral point @ 5418, and in UP trends this often favours an UP move, therefore whilst price is trading above 5417 the expectation is price is moving up 44 points again.
Chart reading:- I favour a down move but it's hard to 'short' trade' a lower spiral point, so I'll be looking for any 22 point rejection patterns below 5417 and 5443 (Weekly tops) .
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