SPI Weekly and Daily chartsNext Week the SPI will complete the Dilernia Principle of a 2-wave monthly pattern towards MAy's highs @ 6065..
Next week's Weekly highs match the MAY highs....
Once These highs are reached my view is the SPI will begin to move into a monthly sideways pattern, which could see price back down into June's 50% level
Note: The Yearly balance point (6200) is where the entire sell off started in 2008, it would not surprise me to see a re-test of the Yearly balance point in 2008, but at this stage that's not my view. My view was from March lows @ 5056 into MAY's highs @ 6065:- 1,000 points
As mentioned in the Premium Trader, I want to be trading Longs in stocks from March lows and up into May's highs. Once those highs are reached I want to move back into CASH positions and don't want to be holding stocks, especially financial stocks in June (short-medium term)
It's too early to tell what's going to happen around highs because there will be 1 more month until the end of the Quarter, and for me to be trading stocks again I would need to see a unwinding of the markets and Price moving back towards their Monthly lows....
Move into cash on Stocks and continue to trade short-term derivatives.
SPI 5-day pattern:-Last Week's price action was a tight 5-day pattern with an UP bias,which was influence by US markets continuing higher.
Every higher open provided nice 'open' short trades and also Friday's 5-day high.
There were some nice consolidating 'money' patterns last week of 44 point ranges
Note:- First confirming weaker pattern around 6065 will be a cross over of the 5-day 50% level and continuation down....
For all your higher probability set-ups each day and Daily analysis are found in the Premium trader...(Index Forex)
http://www.datafeeds.com.au/premiumtrader.html
