XJO Weekly ChartsThe Aussie Index is moving down into the Yearly lows, which will probably be reached in September.
From the Time price was trading below 6213 (Bear Market :- Dilernia Principles), the downside target in 2008 were the Yearly lows.
And along with support, swing patterns, trends, resistance, and cycles:- the market structure was precisely mapped out based on the timeframe parameters defined by the Dilernia model.
Price doesn't move in a straight line, it zig-zags its way based on waves of 'Time'. A support level is valid for the current timeframe, once that timeframe ends the levels of support 'shift' and dynamically move forward, allowing the trader to have a trading model that is forward looking.
As is the case with July's support:- vaild for the current monthly timeframe but shifts forward at the start of the new timeframe. What support that existed in July won't be valid in the month of August.
SPI Weekly and 24 hour charts
Expectation is that the Aussie Index is moving down into the Yearly lows around 4538which is starting to align with the August lows.
I've put up both charts showing a difference in levels with the August lows, and if the SPI ends up lower it will probably occur in September, which could push lower based on the next monthly dynamic range, but I'll come back to that in 4 weeks time.
September could see the market as low @ 4373.
I can see the aussie market around that level in September, but I'd be surprised to see the market much lower in 2008. However, I do expect a lower low in 2009, which will be determined by the closing price of 2008 on the last day of the year.
SPI Daily and 5-day pattern
July's lows supported the market, and if the market was going to go higher, then it was based on the open of August and it's direction based on the midpoint of August @ 5000.
As mentioned in last week's report:- an open below that level in August and expectation price is moving down towards August lows, as it follows the B setup.
Day traders:- simply trade the 5-day levels using Spiral point techniques.
- Daily Trading Set-ups & Analysis
