SPI Report 28th Nov part 6

With US markets selling off on Monday, there is the potential that the Australian Market could make a move down towards 6251 and the Quarterly 50% level on any further weakness. Personally I would rather see the next wave down occurring from December 50% levels, than just selling off this week.

The R87 has a 'gap' open, normally the market will move upwards into the gap. It doesn't favour selling. A lower open on 'gaps' will normally push upwards into the R87 gap (yesterday’s morning report)

13:45pm

Yesterday played that role of filling the gaps on the way upwards on Tuesday, and today it’s playing the role of following the market trend defined by the 3-day cycles and Weekly Trend:- DOWN

Price is now back into Major support at the November 50% levels, and further weakness is down towards 6251 and then proceeding lower into December lows.

Ideally I would still like to see consolidation into the end of the trading week, providing the better opportunity for short-trading down into the lower levels from December 50% levels, than this week.

No LONG trading today around the lows today, see how it closes today before trading once again, as the potential to follow the weekly trend lower can occur:- higher daily close (Tuesday) followed by a higher daily open and moving down on Wednesday

Weekly Dynamics are 6273 (channel lows)

US markets still consolidating around major November low support zones.

If November 50% level @ 6363 continues to hold for this month, this same level won't be valid for support in December.

Support disappears as Time moves forward.

Trend Direction defined by December 50% next week

FOREX REPORT 28th November GBP/USD

GBP currently trading in a sideways pattern waiting for current month to end and the new month to begin before any new trend develops.

The best trades are occuring around 90 point spiral bottoms, and yesterday's trade was a perfect example of using an 90 point spiral top along with the 5-day 50% level to trade upwards. No set-ups for Tuesday unless the market comes back down 90 pips and aligns with the 5-day 50% level... Yesterday's report


Price rotated down on Tuesday, and once again supported at the 5-day 50% level, and a 90-pip low.

Traders can use the 90 pip spiral point and look for .46 and 90 pip moves on Wednesday.

Risk trading longs below Tuesday's lows.

SPI Report 28th Nov part 5

10:55am

I had two set-ups today.

Trade the move down from yesterday's Spiral point, and then trade longs today from the R44 Spiral point low and 5-day 50% level upwards.

The push down into the previous R44 range high @ 6415 and now consolidating around the 5-day 50% level, looks like a choppy trading day that can go either way.

Stopped on 3rd trade @ 6419, taking rest of the day off

SPI Report 28th Nov part 4

10:28am

Re-entered longs @ R44 spiral low confirmed with the 5-day 50% level....

Again long for R22 upswing and hold into R44 high, and hopefully this time it continues upwards.

Stops below today's lows after R22 upswing and won't trade again today if stopped out..

Daily range Random length as it's trading around the 5-day 50% level...

SPI report 28th Nov part 3

10:15am

Partial exit R22 up @6448

Stops below 6425

Next exit 42 points upside and holding into end of the day...

Market currently trading around 5-day 50% level so market remains choppy and each way bet today on direction...

SPI Report 28th Nov part 2

“Because yesterday is a higher spiral point I favour price moving down on open and completing the R44 range, which is going to be a spiral point and align with the 5-day 50% level, which has already been a support zone this week....(premium report)”

Those shorts exit around 6428…


10:05


Rising upwards from 6425 and into a 44 point range high from today's lows:- I don’t have a view for the rest of the trading day if the R44 upswing takes place.

It can either stall and consolidate for the rest of the day, or it can continue higher back towards the 3-day highs once again @ 6512

Not shorting around R44 tops, but running last long contract open into close with stops below 6425...

SPI Report 28th Nov 2007

SPI remains supported around the November 50% level, and looks range bound with an UP bias until the end of the Month, and new Dynamic levels are defined for December

Major support around the monthly 50% levels, however the intermediate timeframes are still in a downtrend ( below 3-day highs and weekly 50% level)

All Gaps on the daily ranges have now closed...

Fridays 6383
Tuesday 6425
and Mondays 6468

Wednesday:- opening in the middle of the 5-day range and it can go either way, however the risk level will be defined by the completion of yesterday's 44 point range for the first Spiral point to be formed.

If it moves upward on open it will be 6478 which aligns with the Weekly 50% level (resistance)

If it moves down into 6425 it aligns with the 5-day 50% (support)

Don't trade against the trend after the first spiral point is formed (Risk)

Premium report to follow...

US report 27th November Part 3

"Above the 5-day 50% level, and look for resistance around yesterday’s 5-day 50% level." (morning report)



'DOW' moved upwards from the earlier report hitting the previous 5-day 50% level and moving back down, whilst 'ES' has remained below the current 50% level and continues to follow the overall trend down towards lower channels on Wednesday.

Full Report later....

US report 27th November Part 2

US traders shorting from the 5-day 50% level with the expectation of the market moving down towards the lows, partial exit at these levels, and hold for the completion down.

These levels are also supprt zones:-

Don't trade longs below them.

US report 27th November 2007

DOW and ES-minis

The Weekly charts below show both US markets heading down towards the November lows calculated using the Weekly timeframes.

I’ve already pointed out in the Weekly report that my expectation is a 2nd wave sell-off pattern towards the December lows, however the best set-up would be a swing from the November lows and then move upwards into the end of this month, for the 2nd wave down to evenutate from the December 50% levels.



Monday was a large trending down-day, and moving into the Weekly lows, where the ES found buying support.

My Expectation was for a down-day on Monday, but I didn’t expect such a large move down, however my expectation is for an UP day on Tuesday breaking the 5-day 50% level and then heading upward towards the 3-day highs once again.




Tuesday:- 5-day 50% level is going to define the trend.

A push lower would be towards the 5-day dynamic lows in both markets, where major support would verify a swing back above the 5-day 50% level.

Don’t trade longs below blue channels.

Above the 5-day 50% level, and look for resistance around yesterday’s 5-day 50% level.

Day traders:- use levels in the intra-day chart to manage positions.

Tuesday was my BUY day:- However that set-up could happen from lower prices, or just move back above the 5-day 50% level and continue higher.

Below the 5-day 50% level and expectation is price is heading towards daily lower channels, as shown in above chart