SPI Monthly and Weekly
I'm still bearish on the Index and I'm still expecting lower prices in February.
Only if Price can move down into the February lows @ 2950-3128 to complete a double Monthly low pattern would I then feel the market is ripe for a bounce.
If the Market remains range bound for the rest of February, as it has done for the past 3 weeks then the March 50% level will define the trend.
SPI Weekly and 5-day patternLast week the SPI had a higher Weekly open pushing down from the 50% level @ 3508.
Tuesday broke the 5-day 50% level @ 3469 and continued down into Wednesday's lows.
As has been the case lately, the Market remained range bound between the 5-day channels and consolidated.
Once above the 5-day 50% level, the market continued higher and stalled.
Therefore if the market is going lower, then early next week we need to see the SPI continue down from Thursday-Friday's highs and break the 5-day 50% level once again.
I'm not bullish on the market, and i'd keep my eye on Resource stocks next week for any signs of prices reversing down, as this will drag our market lower.
If BHP starts trading below Friday's lows and remains below Friday's lows, then resource stocks can begin to drift back do into January's recent lows.
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