DOW and SPI (Aussie) Weekly charts
Expectation global markets would reverse off their July lows and swing back towards their Monthly 50% levels.
Once they get to their Monthly 50% level next week, I've factored in another wave down to complete the downtrend in 2008.
In the charts you can see that there is a trailing white line. This white line is the 3-week cycle, which often defines the trend within each Quarterly timeframe.
This cycle is important because it's going to give me a better idea on the speed on any reversal downward.
Basically, a failure to close above that level next Week (close of the month) and there is a good chance that market will begin the next down trend.
If Market closes above that level next Friday (close of the month), I still favour further weakness, but it might take until after September and the next Quarter to begin the downtrend.
A Friday close above the 'cycle' next Friday can attract more short-covering for the rest of this Quarter.
So let's see where next Friday closes....
Financials making good gains, and hopefully I'll be out of the of financials next week.
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