Price is still trading below January lows, and therefore it's still in a monthly 'downward-break', and this massive reversal is simply a 'dead-cat' bounce within the Weekly timeframe. Until Price moves above the February 50% level then trend remains down.
Next week:- a move under 5771 and price will move back down to 5580 (gap closure and Quarterly support) Whenever the market closes above the 3-day highs, like it did on Friday, there is always an expectation of a reversal back into the break (5771), and because there is such a large gap to the 3-day lows, a downward move to 5580 is a high possibility before any UP move occurs.
Weekly report 26th December 2008
SPI has completed the gap closure @ 5580 in the first two days of the trading week.A bullish set-up will move higher on the 3rd day;- if it moves above 5771 in the 2nd half of the Week I favour a move upwards towards the February 50%.
There is only 1 day remaining until the end of the trading month.
And it all depends on US market on Wednesday, because a failure of a rate Cut and US markets will probably move lower, and the SPI will probably open below the 3-day lows @ 5477. (change of 3-day cycle again)
We can already see any further potential weakness in February.....(February 50% resistance)
