SPI Weekly chartJanuary Crash pattern 'breakout' and a 2-monthly wave pattern lower into March lows.
Expectation is now that the SPI will rotate back towards the April 50% levels, but traders need to keep in mind that the next Quarterly timeframe is pointing lower, and we still haven't reached the Yearly Support lows for 2008.
Banking stocks look supported but range bound in the next Quarter, whilst mining stocks look to be the ones most vunerable and could come off much further in the next Quarter ...(Read BHP stock report)
SPI Daily Chart.March lows were reached and bounced, and the first sign of a reversal taking place was the move above the 3-day highs on Wednesday.
The 2nd sign of any continuation upwards is going to be next Week's 50% @ 5231.
Therefore:- the bounce off the Monthly lows needs to be confirmed with the break of the 3-day cycle highs and then continues higher in the following week using the Weekly 50% level as a trend guide towards the upper Weekly channels.
In 1 week's time April will start and the Balance point for April will be extremely important in the trend direction
SPI Intra-day charts (Recap)Monday was about trading shorts down towards the March lows.
Tuesday was about trading longs from lower spiral points because of the expectation that the market would swing upwards.
Wednesday was about 'short trading' the higher open and gap down towards the 5-day 50% levels
Thursday was about using 5254 as a trend guide.
Next Week:- is simply going to be about the 5-day 50% levels, and obviously the Weekly 50% level
Please refer to the Daily Report....
