(Previous Weekly report)
SPI Monthly and Weekly cycles
The continuation of the upward trend (#A) from the July lows, as shown in the Monthly charts failed to materialise, as the US continues to fail resolving its debt ceiling problem.
This has put pressure on the markets, and as we can see the Australian Market has closed below 3rd quarter support levels.
If something is done over the weekend to resolve it, then Markets can open much higher, and quickly move back towards the August 50% level and beyond.
However, if I’m focusing on the current patterns in the Weekly cycles, then the Weekly breakout this week would normally continue to move towards next week’s lows: - break and extend pattern.
Normally, next week's lows can provide a swing point for a move towards back towards the August 50% level, once validated with patterns within the 5-day range.
However, as I’ve been saying for a number of weeks now….whilst the debt ceiling issue hangs over the markets, and whilst the SPI is below 4405, the trend bias can follow the Primary trend down into 4137/57, and the next long term BUY zone (#B)
