SPI Daily 9th December 2009 recap

"At this stage the SPI isn't opening or trading below the 5-day lows on Wednesday so I don't expect the trend to continue down on Wednesday.

Potential upside is towards 4654 (or 42 points)"




SPI Weekly and 5-day pattern.

Wednesday support and now a daily close below the December and Weekly 50% levels.

After my post on the 27th November.... of this week being a potential reversal of trend pattern, along with the US markets beginning this week with 2-down days, I now favour our market slowly unwinding and moving lower in the first quarter of 2010 (larger timeframe cycles and change of trend)

There hasn't been a breakout of support in US markets, and the only way I would get short-term bullish again is if US markets have a Daily HOOK pattern on Wednesday.

Therefore the resistance levels are now the December and Weekly 50% levels that have supported the market this week.

Note:- A Daily close below the 3-day cycle lows will change the 3-day cycle into a 'Sell'

This has occurred today, with the daily close below 4754.

That means that prices can consolidate below the December 50% levels for the next 2-days and then continue lower early next week once the 3-day highs catches up with price.

However, it can also mean a 2-day counter trend back towards the highs on Thursday and Friday... but that's only going to happen if a Daily HOOK pattern occurs in the US markets on Wednesday.

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