The Australian Stock Market 26th January 2013

SPI Primary Cycles

The SPI is moving up into the 2013 Primary cycle highs, and in my opinion hitting some major resistance levels for 2013 around 4853/4880

These upper levels are ideal zones to begin to lighten up stock positions and wait for the inevitable pullback into the trailing 3-month lows some time in MAY-JUNE

SPI monthly & Weekly cycles

As noted in last week's report, the market was likely to remain above 4725 for the next 5-days...

but the January highs failed to form a resistance zone that has played it's part for the past 4 years.

Next Week's highs match the Primary cycle Resistance levels...

Whilst a Monthly breakout (January) can often extend up into the following monthly highs, this time February

Australian Stock Market SPI Futures 19th January 2013

SPI Monthly & Weekly cycles

The Current trend is hitting resistance around 4750-4786

but it's likely to remain above the Weekly level @ 4725 for at least the next 5-days

The Australian Stock Report 12th January 2012 (SPI Futures)

SPI Monthly & Weekly cycles

I'm still bullish during this month:-  Target January's highs

but that will be decided by next week's level @ 4694...

as to whether it continues upwards

or dips down into the Weekly 50% level @ 4649 & possibly lower.

The Australian Stock Market SPI Futures 5th January 2013

SPI Primary cycles

My target of 4752 in the 4th Quarter was nearly reached, and because of this week's closing price, the Primary trend for 2013 suggests more gains towards 4853-4880

Now whether the trend will breakout of those 2013 highs and continue upwards for the next 2 years is yet to be seen, but my view is that those levels will form resistance, as the S&P reaches its own 2013 highs.

Long term support around 4447-4467

SPI Monthly & Weekly cycles

Breakout of the December highs will see the trend complete the break-n-extend pattern into the January highs.

Even though I have the SPI moving higher into the 2013 highs,

these January highs have often formed resistance pusing the SPI back down into trailing 1st Quarter Support

currently at 4532.