SPI Weekly Report 17th November 2007

For many these October levels might seem support, especially if there is a 2-3 day counter-trend move in the markets next week, but probability patterns often suggest that the price normally follows the model, so the expectation is that November lows are the target before any major rally or support is verified…

Therefore the Weekly 50% levels next week are resistance zones for a continuation move down after any 2-3 day counter-trend UP move. (previous Weekly Report (11th November US report)

What occured in the US was mirrored in the SPI this week. A counter-trend move upwards from Weekly lows back toward the 3-day highs before another Wave down into Friday as it follows the Weekly timeframe pattern and overall target the November 50% levels.

The overall technical pattern is bearish, and this is also confirmed with price trading below the 3-day cycle and Weekly 50% level.

Price target is for 6363.

This level on the SPI is major support in November 2007.