If the market is going to go higher then these levels need to be verified by next week's close and then continue higher. This usually occurs in the last week of the current month and then pushes upwards in the first week of December from the new December Monthly 50% levels.
What we also notice is that December has a higher step formation @ 4668
Previous Weekly Report
SPI Futures
The market has moved down into the Support levels and have held for the past 4 days.
As mentioned a couple of weeks ago, once support has held the up trend begins to take hold in the last week of the current month (next week) and continues towards higher highs in the first Quarter of 2011.
However, there are two patterns that can change that view...
#1 the higher step formation in the forward month can result in a change in trend identification
#2 there's currently a Dilernia Drop in the S&P, which can continue to put short-term pressure on US markets until the end of the month (Read US Report)
