SPI Weekly Report:-
The Australian Market has completed the 2-period monthly wave pattern into September highs. The target and resistance (6655) is only valid for September.
We can see the movemment into August highs @6255 and now the September highs @ 6655.
With the end of the Quarterly and monthly timeframes, there is a shift in the forward timeframes.The market is now forecasting further moves upward towards 7022 in the next quarter, as price moves in a 2-period Quarterly pattern following the same principles.
Even though there seems to be a lot of bad ‘fundamental’ news around, I think this has already been factored in with last Quarter sell-off. That sell-off in July was forewarned with ‘drops’ in the forward months, and at this stage there are no drops: - therefore I can’t have a view there will be any sustained weakness in global markets just yet.
Last Weeks trending week will hopefully move back into ‘rotation’. The expectation was that price was rising towards September highs, which ended up being a ‘bottom-to-top trading week.
Next week I’m looking for more rotation and far more ‘re-tests’ of the 3-day lows. Even though the expectation is the market rising upwards, I’d expected more down days.
It would actually be ideal to see a rotation back all the way towards the monthly and Quarterly 50% levels again before the next up move. (6363)
