Australian Index XJO:- MonthlyExpectation of a reversal down from MAY highs, which coincided with the US markets reaching their first resistance levels around the same levels since the MARCH lows.
I want to see the SPI continue down into the 50% levels.
If the SPI can hold support in MAY:- higher close above, then there is an expectation of a 3rd Quarter UP move towards 4400 lead by financials.
A close below those support levels, and then I have the view that a revisit of recent lows is on the cards.
SPI WeeklyExpectation of a reversal down was confirmed with the MAY highs, then the break of the Weekly 50% level @ 3856 and the first target reached @ 3740.
Once price has reached 3740 on Thursday I was looking for Friday to move up into the Weekly 50% level once again, as that would have provided another ideal 'short' trade pattern down early next week:- Sell resistance and a higher Daily open
That didn't happen but the Weekly 50% level next week @ 3789 is simply going to be the trend guide.
The interesting thing about this pattern is....
A down trend should just sell off from this level next week and continue down into the MAY 50% levels @ 3589.
If there is a lower Day move on Monday but a higher Tuesday close above 3789, this could lead in a Daily HOOK pattern.
HOOK patterns normally lead to higher Friday closes.
So we end up with a consolidating Weekly timeframe:- Lower open and higher close
This might match my view of the price action in the US on Friday....
US markets should have sold off more on Friday (read US Weekly Report)
