Previous Weekly report
SPI futures:- Monthly and Weekly
We have seen the last week of the previous month reverse upwards from support and then breakout of the 5-day highs on the first day of December.
Based on the current price action my view is to continue towards the December highs over the next 5-days...using the December 50% level as a trend guide @ 4689.
The current Weekly 50% level @ 4696 is supporting the market, but Thursday's breakout of the 5-day highs @ 4635 could see a short-term stall pattern early next week(trailing support levels)
3-day cycle lows are now all the way back down @ 4562, which can often result in a waiting game of a couple of days until the 3-day lows catch up with the current trend before the market continues upwards.
I also mentioned a potential bearish pattern appearing in December:- higher step formation.
If it does appear in the 2nd week of December, then the rotation pattern is for the market to move down towards the 2011 50% level @ 4433 (20th November).
The only pattern that I think will put pressure on the SPI is if the next 5-days moves upwards into a higher Friday close, and then the 'following week' reverses down (2nd Week) and closes below the 4689...
This can often put pressure on the market until the end of the month.
Note:- next week is the first week of Dec and the 2nd week begins from the 13th Dec
Most of the price action during this Quarter and future probable price action is clearly described in my new book.... "Market Trading Market Timing"
