These levels are extremely important on any continuation upwards this week, as prices look to rotate back towards the Monthly 50% levels next week...
A bullish Weekly trend will remain above this level (3682) and continue towards Wednesday's highs:
Not so bullish:- and a higher open below 3682 will move right back down into 3622 and further....
My overall view this week is higher prices towards Friday in US markets, but a 2-day reversal into the Weekly 50% level can often see a 3rd day DOWN day".
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SPI Weekly and 5-day pattern
As pointed out in yesterday's report, Monday and Tuesday were based on a 2-day rotation back into the Weekly 50% level. (Read SPI 25th November recap below)
An open below 3682 on Wednesday and there was a higher probability that the 3rd day would continue down.
The market dynamics in US markets compared to the Australian market are different, where US markets are at this stage trading above their Weekly 50% level, the Aussie market is trading below.
This also has a lot to do with the higher timeframe Monthly levels: US markets bounced off their lows last Week, whereas the Australian Market had closed below theirs.
At this stage any higher moves in the Australian market this week, will have to picky-back off any potential higher moves in US markets...
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