XJO Quarterly and Yearly charts2nd phase bear markets remain whilst price is trading below the Yearly 50% level, with a potential to move back down into 5170 and then a double bottom.
As mentioned in last week's report....
" Australian market has rotated back into the Yearly 50% level and stalled, and it also matches the Breakout of the December Quarterly lows, therefore there is a lot of resistance around this week's highs.
When you read the Stock Report on Banking stocks, there doesn't leave much room for further UPside moves in the next Quarter in the Australian Market.
Even though the Weekly cycle changed to BUY with this Week's Rally, that leaves a large gap to the cycle lows and a rotation back down.
After last week's rally it just looks like a major consolidation pattern will play out for the next 3-months.
SPI Monthly ChartPlays to keep an eye out in April. (Weekly Report 5th April)
B:- Reverses down early next week and re-tests the 3-week cycle high breakout @ 5464 before finding support....
C:- Reverses down early next Week and continues down into the 3-week lows....
At this stage the B set-up has completed, and has continued towards a C set-up, with the potential of further weakness, depending on price action next week.
SPI Daily ChartThis Week was about trading down into the Weekly 50% level, as it followed the B set-up.
There was always a potential of a lower Weekly close on Friday as it moves back towards the Weekly lows 5312, but it wasn't what I was hoping for.
For those reading the Daily reports in the Trader Premium, all week the bias was to 'short' trade down.
However, I was hoping for a move upwards on Friday, back into the April 50% level ,and then a continued sell off early next Week down towards the Weekly lows @ 5312
This would have provided a much more robust sell pattern than just a continuation down into the Weekly lows because of US markets heading lower on Friday.
Next week those Weekly lows will be reached, but it's not going to provide a robust 'short' pattern to trade down, therefore.....
Next Week there are two plays:-
C Set-up: - Continues down into the Weekly lows, breaks and heads down into 5170 and then into the April lows
C & D set-up:- Continues down into Weekly lows, and then swing upwards back into the Weekly 50% level, and as high as the April 50% level.
This is because of the Lower Weekly open and swing back upwards into a 3-day counter-trend move with the 'new' 5-day trading pattern.
The best trading set-ups for any moves will always be found in the The Trader Premium because of the Dilernia model using 5-day pattern recognition techniques.
