When looking at US markets they couldn't remain supported above their 3-week cycles lows, they actually closed lower, which often favours a continuation down."
Previous Weekly Report
SPI Weekly
SPI was dragged down by US markets last week, with a 5-day choppy pattern remaining above 4830.
This week is contract expiry, with December contracts running at a 45 point premium to the SPOT often sees the SPI move higher into Thursday and the day of expiry.
How far the SPI will move is any one's guess, but a move back towards 5164:- 3 week highs is a probability.
But after that I see don't see too much strength in Global Markets.
October becomes interesting because of the drop in the 50% levels.
I've mentioned before that I want to see lower prices in this quarter before a 3-month counter-trend move upwards, but if prices start trading above the forward Monthly 50% level in October, then the view is that the Aussie Market will begin a gradual rise upwards in a 'Monthly' step' formation towards 5355 in the next Quarter.
SPI 5-day pattern
Until then :- Day traders continue to use the 5-day levels and Spiral point set-ups each day.
They are the most robust intra-day set-ups that you can use, because they operate with high statistical probability when using Swing and Momentum techniques.
- Daily Trading Set-ups & Analysis
