If the market is below 4658, then I'll look for a 'short' trade set-up from Wednesday onwards, as part of a rotation back down"
Previous Weekly report
SPI Monthly and Weekly
SPI continued to move higher last week until Wednesday's 'sell' pattern appeared around the Weekly highs @ 4724
The break of 4658 was then confirmed on Thursday, as part of an expected rotation down into higher timeframe support levels.
As my Weekly reports have been saying for a number of week's now, 4672-76 is a major resistance zone, which has now shifted in the 4th quarter (less resistance)
My ideal pattern would be to see a rotation back down into the October 50% level:- form support and then HOOK back above 4582...for a continuation up towards 4900 over the next 2-3 months during the 4th Quarter.
If the SPI can make it's way down towards 4514 and then reverse using a lower weekly open...then the first target would be 4900, as I'm not expecting the October highs to 'stall' price.
If the SPI closes above the October highs at the end of the month, then my view is that the trend is going higher until the start of 2011.
Note:- All long-term analysis and expectations must be optimised using lesser timeframe patterns (Weekly) to help validate the view
If the SPI doesn't move down into 4514 but continues to move upwards using the Weekly 50% level as a support level, then the 4th Quarter will more likely zig-zag within the monthly levels (October highs resistance) with an upwards bias towards 4900
