SPI monthlyLast Week saw the market reverse back down into SET-UP A and remain below the 3-week lows (4574) for most of the week until Friday, when price move back this key level closing the Weekly timeframe above.
With price closing higher on Friday and above a number of key levels, (Yearly 50% level 4455, the November 50% level, and the 3-week lows) at this stage I favour the Australian market following SET-UP B, and heading back towards the highs, helped by the US markets following the same pattern.
SPI Weekly and 5-day pattern"Robust swing points to trade longs from lower prices from next Friday. The trend would continue down another week, but then provide support next Friday and for a large 3-day counter-trend rally back upwards the week after that" Previous US Weekly report
The SPI has tested the Yearly 50% level @ 4455, and is now rising upwards.
My lower Friday pattern ended up a higher Friday pattern, with the cross-over of the 5-day 50% level @ 4561 but I expected far more buying on Friday to be closing near the weekly 50% level and Monday opening above.
Even though I'm bullish from these levels, there needs to be lesser timeframe patterns to validate support:- Price to be trading above the Weekly 50% level, and also breaking out of the 5-day high.
At this stage Monday will be trading near the 5-day high and below resistance, which might see a 2-day stall pattern.
