Aussie Index (SPI) 1stJanuary 2011 Weekly

"In the short-term the trend remains stable with an upwards bias, however we need to keep an eye on the SPI move down into the Weekly lows @ 4692 over the next 2-weeks...

As this pattern would provide the next 'support' level for the trend to continue
towards those first Quarter highs in 2011"

Previous Weekly report.

SPI monthly and Weekly

Last day of the Primary cycle in 2010 produces a ‘flash crash’ down into the Weekly lows @ 4692.

This completes the short-term reversal pattern, and I would normally associate this pattern as the market moving down into support and then continuing higher at the start of the following Quarter:- January’s highs.

However, anything below the January 50% level @ 4703 is open to risk…



SPI Yearly

If we follow the Primary trend for 2011, our market over the next 12 months should continue up towards 5093 and could go as high as 5285....

helped by this week's price action (Weekly support), and a move towards the January highs @ 4844.

However, if I'm wrong and price is trading below 4703...

Then the critical support level in 2011 is 4442