SPI Weekly and Daily chartsAustralian Index is consolidating in a sideways pattern over the past two months.
Ideally I want to see a completion down in this quarter to bottom out the markets, so we can finally get a 3-month counter-trend move upwards.
I was hoping that US markets would leads us down (Read US Weekly Report), but Friday in the US moved higher.
At this stage the June breakout and Monthly 50% level are still view as resistance until they breakout, and they will breakout:- But my breakout starts with a touch of the lows before price usually continues higher.
I've mentioned previously that any UP move will begin with US markets leading the breakout, and that remains, so at this stage the view remains more consolidation unless the last Week of this month continues higher.
4th Week:- last week of the month often starts the next trend, which leads into the continuation of the trend in the following month, but who is not to say that next Week just continues higher....
Personally I hope it remains in a sideways pattern, especially when day trading futures....
These markets are ideal for the way I trade:- consolidating trading patterns of weekly sideways price action favours swing trading, which is the core theory of spiral point trading (c).
There is enough volatility in the market that it moves 87 points and not just 44 points.
When markets trend in one direction, the frequency drops and volatility drops especially when Market rise, not so much when markets go down
The end result in trending markets is my profits drop because my frequency of trades drop.
Hopefully markets don't go up yet.....
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