SPI monthly and Weekly
Is the SPI going to continue higher in December and move towards 4996...
or is the SPI going to continue down and move down into the November lows?
That's going to depend on the price action in the S&P 500 over the next 2 days...
http://usindexweekly.blogspot.com/2009/11/s-500-futures-21st-nov-09-weekly.html
The SPI is in a 3-week sell cycle...
If the SPI was going to go higher it would have closed back above the 3-week cycle highs to once again change the cycle into a BUY.
Normally a change of cycle will move into a 2-period 'stall' pattern and then continue with the trend.
The SPI has now completed a 2-week stall pattern but still in a SELL cycle.
If US markets move down and continue down on Tuesday...
The 3-week sell cycle on the SPI will most likely break the monthly 50% levels and continue down into the monthly lows.
Note:- if US markets continue to remain supported above the Weekly 50% level and Tuesday closes higher...
The SPI will remain above the Weekly 50% levels and mostly likely follow a move upwards.
