Australian Index XJO Yearly timeframe
End of 2008 and the beginning of the new Primary cycles for 2009.
Trading range between the 50% levels and the 2009 lows.
As we saw in the 2007 highs, there can be lesser timeframes (Monthly) that push the market further than the actual Yearly ranges.
There is a breakout in the 2008 lows and the Aussie market will struggle to move higher than those 2008 lows, which align with the 50% levels in 2009.
Once those rotation back towards the 50% levels play out, I would look for the next unwinding pattern into lower lows in 2009, which has been my view since price crossed over the 2008 50% levels @ 5750.
Dilernia Principle:- 2xtimeframe pattern extends outward
SPI Futures Monthly
"We also notice in the forward timeframe (January) that there is now a higher low in the forward monthly timeframe, which often favours higher prices" Previous Weekly Report
This week saw higher prices, however all we have seen is price rotate back towards the Monthly 50% levels, and the market remains in SET UP A.
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.
I was looking for SET-UP B to begin :- Price in January would be rotating back towards the Yearly breakouts from 2008, the first Quarterly 50% level in 2009.
But for me to be confident that SET-UP B was going to occur was for Price to actually rotate all the way back towards the December 50% level @ 4051.
This would have put the market above the January 50% level and all we needed was for price to come back down into January 50% level, test support and then continue the wave structure upwards.
At this stage we haven't done that and we still remain below the Monthly 50% levels.
SPI Future Weekly
At this stage I view the market still range bound between the Weekly highs (January 50%) and the Weekly 50% level.
As we can see there has now been a shift in those levels at the start of January, so there will be higher prices, but it's too early to confidently say that January will continue UP towards 4300, other than remain between the Weekly channels.
