SPI Monthly and WeeklyAs per last Week's report:- early price action was #1 : Weekly 50% level becomes another resistance zone sending the SPI down once again.
However, my first target @ 3705 didn't reach, as this level was part of a view of a 2-day reversal back towards the Weekly 50% level @ 3891.
That reversal pattern back towards the Weekly 50% level played out, and now with 3 days to go until the 3rd Quarter, it sets up a potential 3rd Quarter move towards 4400.
However, being a higher Weekly open and trading below Weekly 50% level, it's a bit hard to get get excited just yet.
Normally a higher weekly open trading around resistance would continue down for the first 2 days, which aligns with the start of the 3rd Quarter.
SPI Monthly....
I've been harping on for a couple of months that the SPI is going to go higher in the 3rd quarter towards 4400...
I didn't know where the SPI would be at the close of the 2nd Quarter, but based on current price action and trading around the 3rd quarter 50%, there is a potential Thrust pattern in play...
Thrust pattern:- is a trend originating from the Monthly 50% levels in the new Quarter.
However, we first have to deal with next week's higher Weekly open, and it might take another 5-days of trading until next week closes to verify any continuation upwards.
But we will get an idea about any trend direction by price trading either side of the Weekly 50% level, confirmed with a 5-day breakout range.
Australian CASH Market (XJO)
Looking at the XJO, we can see why the SPI didn't drop down more, and the 3rd Quarter 50% level is simply going to be defined by July 50% level, confirmed after another 5-days of trading.
If Price is trading below the 3rd Quarter 50% levels, then any UP trend continuing is open to Risk....
And the market could just continue to move in another 2-3 month sideways pattern, with a downward bias.
