Australian XJO Index Yearly and Quarterly Model2008 Yearly breakout @ 4243.
Dilernia Principle:- Breakout of the timeframe and price moves to the extreme of the next timeframe
The Australian Market should reach the Yearly lows@ 2780 by the 2nd Quarter of 2009.
But these won't be the lows for the Year, as there will be a lesser timeframe that extends slightly lower pushing the market below 2780.
I'll will know when the lows are by a monthly breakout pattern that will extend downward, which was the exact same pattern in 2003
SPI Futures MonthlyThe SPI should continue down into the Monthly lows in March, and then continue to follow the same pattern down towards 2780 in the 2nd Quarter, as the April lows extend downward.
That would be based on text book patterns as price follows the waves of Time.
SPI Weekly
As has been the case in February, the downward movements have followed the lesser Weekly timeframe lower.
But as each Weekly low has been reached, the market consolidates.
In conclusion:- the Australian Market is heading down into 2780 & lower
How it gets there is by either a swift move down in March, or price can follow the timeframe patterns downward which can take a number of weeks to play out, as each new support level shifts as time moves forward.
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