SPI Monthly and Weekly
"A lot of resistance levels around 4956-68, and the sign of any reversal will be a breakout of the 5-day lows (White line)"....Previous Weekly report
As per my view of 4956-68 being a major resistance zone I'm expecting the market to reverse down from these levels and begin to move into a larger Trend reversal.
4956 was reached precisely during the week in Sycom and then followed by a break of the 5-day lows, as US markets followed my expectation of a 2-day reversal down at the start of last week.
Currently the SPI is being supported around the Weekly 50% levels.
The major breakout of support will begin with price trading below 4781, which will probably occur during an overnight session. If US markets continue down next week, as part of my view of a trend reversal then over the next 3-weeks things should begin to get some decent volatility back into the market.
I could be completely wrong on my view, but little things can grow into big things, and the current price action that is occuring is acting in a manner that often leads into big things.
Note:- I'm not expecting January 50% levels to hold support.
If price is still above those monthy 50% levels by the end of the month, then there's the potential of the market breaking out of those upper resistance levels in the 2nd half of the first Quarter.
