Resistance 4541 (Weekly highs)
Support 4498.
SPI Weekly and daily range
The SPI is trading around resistance levels @ 4541-65, and the current price action is part of a 2nd day reversal pattern within the 5-day range.
I have the view that the SPI is moving higher during the 3rd Quarter and towards 4672, however I would like to see the S&P follow a similar pattern as the SPI and reverse down (1-day reversal)
The market is trading above the monthly 50% levels, and the ideal pattern is to verify those levels with a minor reversal down (lower Daily close) and then continue higher by Friday using Support.
SPI consolidating during the 3rd Quarter between the July lows @ 4170 and current highs in August.
However, the critical support level in 2010 has been the Yearly 50% level @ 4295
This sets up a move towards 4672 and possibly higher by September (monthly highs) and then we look for the next set-ups in the 4th Quarter using support levels.
Either markets continue higher during the 3rd quarter (This Week)…
And any further gains in the Aussie market (above 4565) will be lead by the S&P 500.
If support levels don’t hold this week, then the 3rd quarter is likely to continue and consolidate with the trend reversing back down towards the Weekly lows.
These Weekly lows are then used for the next leg upwards in September.
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