"As illustrated in previous Weekly reports, the Monthly support levels (RED) often provide a robust entry level during current Quarterly cycle & up into new highs in forward Quarterly highs:- 3-6 month trend:- Current Support resides around 4904
A break of the same Monthly Support level will put pressure on the trend to drop further, until the same pattern appears into the forward Quarterly cycle providing the next long-term entry level:- that long term entry level is @ 4673"
SPI Primary & Monthly cycles
Whilst the trend is above the Yearly highs @ 4853, there's an expectation that the upward trend will continue for the next 2 years, as it follows the Dilernia Principle:- Break & extend pattern towards the 2014 Yearly highs.
We can now see that the Current Support level in the 2nd Quarter has held, and if the trend is going to continue higher, then traders will know that a breakout of the 5-day highs next week will help validate that pattern.
However, a break of the 5-day lows next week ( SUPPORT) and often the trend will move in the opposite direction:- towards 4678
At this stage we should be looking for the Primary trend to continue higher.
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