SPI 3rd November 2008 recap

SPI opening right on the Weekly 50% level @ 4086.

Is the SPI going to reverse down from this level.... or continue higher on Monday back the Monthly 50% levels?

I don't know at this stage, but with the Reserve Bank cutting rates tomorrow (probably), the bias is leaning towards pushing higher into Tuesday....

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SPI Weekly and 5-day pattern

Last Week US markets 'hooked' above the Weekly 50% level and continued higher into Friday, and today on the SPI was the first confirming pattern of a reversal with a cross over of the Weekly 50% level @ 4086.

Today's rally has gone straight into the monthly balance point @ 4215 and stalled.

This levels becomes a critical level in any trend guide for November, but with today's breakout of the 5-day high, this often sees higher prices in the coming days.


At this stage price looks like it will continue towards 4315...

However the first sign of weakness will be price trading back below the Weekly 50% level, and then below the 5-day 50%.

The rest of this week should be defined by Monday's high @ 4153

And this will depend largely on US markets....


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