Trend guide 4933 with the expectation price is pushing down into 4904.
This will complete the R42 range, which will put it below the 5-day 50% level, and expectation price is trying to move towards the Tuesday lows"
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SPI Weekly and 5-day pattern
2-day reversal has completed in the 5-day lows on Tuesday.
As per my Weekly post, my expectation was to begin this week with a short-term reversal pattern (2-day) with the first confirming pattern a move below the 5-day 50% level.
This occurred on the 2nd day @ 4919
2nd confirming tool on a potential reversal pattern will be a close below the cycle lows @ 4880, but this has seen support Tueday.
SPI Monthly and Weekly
As per my end of year post around 4956-68 is a major resistance level in the Aussie market in 2010, and I have a view of a larger trend reversal other than the usual medium term monthly reversals we normally see each Quarter.
Resistance was tested overnight in Sycom and subsquent 2-day reversal back down.
Around these upper levels in the market I just can’t be bullish, unless the market begins to consolidate above 4956 for a number of weeks. Therefore the view during this Quarter is to make its way back towards the 50% levels in January
The reversal pattern in the S&P 500 isn’t as robust as a normal reversal pattern goes, because the confirming pattern on Monday found support on the 5-day 50% level when it should have closed below:- break and continue on Tuesday
Anyway, the initial view was a 2-day reversal, and 2-days doesn’t make a major reversal but it can lead to a potential continuation of my view over the next 5-days.
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