AUSTRALIAN INDEX XJOAll global Index markets followed the same pattern of rising up from the MARCH lows in 2009.
Once that low was in my view was for a swing back into the April highs.
The Australian Market hit a precise top in April and stalled: resistance.
Once that high was reached I became bearish on the Australian Market
The reason why I have the view is because all major lows reach their Yearly lows in the following year to verify the bottom has been set and the market can continue higher.
That's what happened in the US, their Yearly lows were reached and price has continued higher.
For the market to continue down into the Yearly lows, the close of this month had to close below the April 50% level. This would have resutled in another push down into the Yearly lows, which was the pattern in 2003.
Even though I was bearish and the market hasn't moved above the April highs, I still wanted to see where April close.
Because April has closed higher, my view now changes to a 2-month sideways pattern between the Monthly 50% levels and the Monthly highs.
If the market remains stable above those Monthly 50% levels this Quarter, then there is a potential 3rd Quarter higher move back towards the Yearly 50% level.
But I still want to see price come back down and test the MAY 50% levels and verify support.
SPI Weekly
April highs reached and sideways pattern.
April resistance has disappeared and has pushed dynamically higher in MAY.
Whilst price is above 3740 the trend bias is to continue higher
Below and it's back into the MAY 50% levels.
At this stage my view is a 2-month sideways pattern between Monthly highs and 50% levels and then look for any 3rd Quarter set-ups.
For day traders, we all simply look to short resistance and trade support in the 5-day pattern.
If those levels fail in the 5-day pattern, we simply adjust to the market the next day.
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