Based on the current price action I'm bullish for this week, with the expectation of a higher Weekly close, but keep in mind that I'm also looking for a 2-day down move in US markets at the start of this week.
Support 4701-17
Below support and expectation is a push down into the monthly 50% levels"
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SPI Weekly and 5-day pattern.
SPI has tested support levels along with the Monday lows @ 4656
Based on higher timeframe patterns I would normally look higher moves as part of a 2-month wave pattern
However, I have the view that there is a potential 2-day down move in US markets (random length)
SPI has tested support levels along with the Monday lows @ 4656
Based on higher timeframe patterns I would normally look higher moves as part of a 2-month wave pattern
However, I have the view that there is a potential 2-day down move in US markets (random length)
Posted on 27th November….
"This is a bear pattern to keep an eye on…
If next week moves upwards and closes on it’s highs on Friday, and the Week after that price reverses down and begins trading below the December 50% levels, then the SPI is likely to continue down, as price goes looking for the Yearly 50% level in 2010"
This is the week that I was talking about, except the SPI didn’t close on it’s highs on Friday (and 5-day highs), but the US markets did with the 5-day highs on Friday, and expected 2-day reversal.
As I mentioned in the Weekly Report….
"Depending on the price action in US markets early next week, there could be early weakness in the first two days, but if price remains above support I’m expecting the market to continue higher into a higher Friday close"
"Even though the UP trend during this month is expected to rise higher, (2-month wave pattern) I’m also expecting a larger trend reversal into 2010 (read previous reports)"
At this stage it’s too early to tell whether this week is the week that does reverse down, because I didn’t get the 5-day high on Friday in the SPI.
The SPI is at major support levels in this up trend, my only concern is the price action in the US markets on Monday and Tuesday even though US markets are well supported and trading above key levels.
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