A rotation UP towards the Monthly 50% level, but it could take a number of weeks to move back towards the Monthly 50% level in August."
Previous Weekly Report
SPI Weekly and Daily charts
The Australian Index found support around July's lows @ 4836 , but the reversal upwards last week wasn't as robust as US markets, namely because BHP was dragging the market down.
I mentioned a number of weeks ago that BHP and other resources stocks would be the main culprits in sending the Index lower, whilst telling my readers that once 4836 hits that i'll be moving back into financials for the 3rd time this year.
And i'll be exiting banking stocks around their Weekly highs and moving into cash again probably early next week.
I'm looking for the Aussie index to remain range bound between last week's lows and 5100, and could move slightly higher in August and back into the 50% level.
After any completion into the 50% level, my view remains for prices to move back down into lower lows in coming months.
