Previous Weekly Report
SPI monthly
This week saw the Australian market follow the same pattern as the previous 3-months, reversing down from the monthly highs defined by the Dilernia Model.
The exact same pattern that occurred in the previous month of MAY, is occurring in the current month of June.
Next week:- The Weekly 50% level drops and this is the new trend guide for the next 5-days of trading, and Monday should clearly give traders an idea about the direction.
There are 3 patterns that can play out.....
1. Weekly 50% level becomes another resistance zone sending the SPI down once again.
2. Monday moves up and closes higher, resulting in a bottom to top close:- higher Friday close.
3. the next 5-days consolidates either side of the Weekly 50% level and continues to do so until the end of the month and the 3rd Quarter begins....
Number 3 was what happened the previous Month.
We can currently see where the 3rd Quarter 50% level is, which will be determined in 2 weeks time at the close of the month, and if Number 3 occurs again the next trend begins in the 3rd Quarter and continues higher towards the Yearly 50% level.
Whilst price is trading above the 3rd Quarter 50% level I have a view of higher prices towards 4400.
However, 2 weeks is a long time in the markets, and if Prices continue to drop (#1), then the 3rd Quarter scenario changes, as it doesn't take much for the SPI to be trading below the 3rd Quarter 50% level.
