Australian Index SPI Futures Monthly
The Australian market is still in SET-UP A:- drifting lower below the Monthly 50% levels and following the dynamic timeframes lower, eventually pushing the market into lower lows in 2009.
Next week is the last week of trading for 2008, so it's important where markets close on the last day, as they will set-up the Primary cycles for 2009 and how far markets will go lower in the new year.
In the mean time next week's trading will still be defined by the 3-week highs, and SET UP B won't occur until there is a Friday close above those highs. (White line)
SET UP B is the probability of markets moving back towards a 3-point level of 'TIME' before the market continues lower.
In this instance, Price in January would be rotating back towards the Yearly breakouts from 2008, the first Quarterly 50% level in 2009, and also the 3-month highs in January.
We also notice in the forward timeframe that there is now a higher low in the forward monthly timeframe, which often favours higher prices.
I still think all global markets will follow SET-UP B first before continuing lower in 2009, but if it doesn't markets will still go lower in 2009.
Financial Index
And the direction of the Financials will have a big bearing of the direction of the overall market.
The breakout of the 2008 lows in the Fin Index and the Financials were always going to struggle to move higher in the 2nd half of 2008, but I always thought the banks were moving into lower lows in the following year, as price follows the Dilernia Principle of 2 prices waves of time
And the financial Index will move down into the lower low in 2009.
So if you are thinking of moving into banks on the long side around those lows would be it.
At this stage the Financial Index is in SET-UP A and heading down into those 2009 lows, but there is still the possibility that SET_UP B plays out, and swings back into the higher timeframe 50% levels before price continues down into the lower lows for 2009.
