Previous Weekly report
SPI Monthly and Weekly
We have the same pattern as in 2010, with the support levels failing by the 2nd day in MAY, on the back of weakness in the S&P 500.
However, we don't have the same outcome.
In 2010 the market reversed back down into the MAY lows during the first 5-days, (Flash Crash)..
Whilst in 2011, the S&P continues to remain above support levels, and the SPI below those support levels, which are now forming resistance.
There are two possible patterns during the rest of MAY....
#1) continues with the downward trend, following the break and extend pattern towards next week's lows (4649-59)
#2) US markets move upwards (read US Index Report) and the SPI has a 'fake break' pattern.
Out of the two, I favour (#1) , and then next best long set-ups will align with lower lows in June...
but it won't surprise me to see #2)
