SPI Futures Australian Stock Market 18th MAY 2012 Daily recap

It's hard to tell how far the SPI will continue lower until the following months dynamics are in place (June lows), but when we look at the Primary cycles the down trend could continue towards 3785, as the S&P 500 drops back towards 1249.

Even though the market is likely to continue lower, today's first 90 minutes is whether lower support levels will swing upwards and close 'gaps'.

If that's the case, then support is around 4070/75 But it will struggle to rise higher than Friday's lows @ 4118

SPI Weekly and Daily cycles

SPI didn’t reach 4118 in early trading..

Instead it found some choppy support around 4070/75 (21 points)…

But then the trend continued to move lower, as yesterday’s 2nd Quarterly 50% levels failed to hold support, as the S&P 500 failed to hold support @ 1315.50.

Trend bias is down towards 3785 (Weekly Report out tomorrow)