SPI Monthly
Ever since the March lows and subsequent rally into the June highs @ 4088, there was an expectation that the market would rotate back down into the July 50% level and then continue towards 4400 in the 3rd quarter.
That larger trend reversal was based upon price trading above July’s 50% level, and last week that wasn’t the case, so the UP move was open to risk of following a 2-month wave pattern downward.
However, based on the ‘fake’ break and this week’s reversal back above the July 50% level, there is now the view that I’ve had for a number months now : -primary trend reversal towards 4400.
There are July highs @ 4067, which can resist price…
But based on a 3rd quarter ‘thrust’ pattern from the 50% level, 4067 can breakout and continue to move higher into August highs.
SPI Weekly
I mentioned that to become bullish on the BUY side the SPI had to be trading back above 3906, which occurred this week. However, the Daily close above the Monthly 50% level along with US markets closing above their 5-day highs..
The continuation upwards was already in motion, which has been my view for a number of months now.
Next Week:- trend and support levels are the Weekly 50% level, with the expectation price is heading upwards.
