SPI Monthly 2009
As per Monthly rejection patterns:- expectation that Global Index markets are heading down towards the January's lows, and then will continue down further into February's lows.
This follows my view of global markets including the Australian Market making lower lows in 2009.
What's the chances of SET-UP B playing out?
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 February.
Much less so at this stage, but often markets do come down into the Weekly lows, verify support and then continue upwards from a lower Weekly open and rise upwards.
SPI WeeklyLast Week's view was once price was below 3691 it was heading down into 3481 and the Weekly lows.
At this stage the Weekly lows have verifed support, but at this stage my view of the SPI
Next week is that it will be range bound between next Week's Weekly lows and the Weekly 50% level.
Keep in mind that the overall trend is down, therefore the Weekly lows can often support the market but much less so because they are a lesser trends within a higher timeframe monthly trend with is pushing price down.
Now regardless of the trends, what's going to define the Australian market next week is how BHP responds to its profit results coming out on the 21st January.
BHP has extremely valid support around $28.00 that could see price push back up towards $33.00.
But only if it's good news.
IF BHP responds favourably then this can also drag RIO TINTO back towards $53.00
A break of $28.00 on bad news and BHP will continue down, and RIO will follow.
And the Aussie market goes lower, which at this stage is what I'm expecting, and nothing tells me otherwise:- Primary cycles in 2009 is to make lower lows
SPI 5-day pattern
Even though the SPI moved down from 3691 down into 3481 :- 200 points....
There wasn't a breakout of the 5-day range until Thursday @ 3560.
The rest of the days followed the price patterns of rotation up from support and back into central zones, and then the continuation lower from those central zones outward, as it followed the Weekly trend down.
Even though I've always believed that the most robust template for Day trading markets is the 5-day pattern, the 5-day pattern must be taken into context with the overall trend.
Understand where the market is going, then you''ll be able to use the 5-day pattern to it's full potential.
Day-traders simply follow the 5-day pattern set-ups found in the Premium Report
This is the only report you'll find that strips the market down from top to bottom, and provides the most comprehensive analytical view of global markets that you'll find anywhere
- Daily Trading Set-ups & Analysis
