SPI MonthlyAs 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.
And those February lows won't be the end of the move down until it starts trading around the 2009 Yearly lows, which could hit in the first quarter (March) but more likely in the 2nd Quarter.
SPI Weekly
The expectation that price would move down towards January's lows aligned with markets reversing down from the monthly 50% levels, but verified once price was trading below the Weekly 50% levels.
As each weekly timeframe completed, there was a new low for price to follow.
And in the case of Friday's breakout of the Weekly lows @ 3426, expectation that the SPI should move down into 3217 next week, and maybe hit the January lows.
However, another pattern that I favour after a 3 week trend, is a Weekly timeframe that actually closes higher, before the trend continues lower the week after in the following Month.
At this stage I can't guarantee a higher Weekly close, because early next week I favour more weakness down into the Weekly lows , but if price stabilises in the first 2 days even without reaching the January lows, I would then see if there is a potential higher close by Friday.
This higher close with probably be lead by the US markets following the same pattern.
If this is the case, then this sets up more weakness the Week after as price continues down into February's lows.
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