This is part of retesting the previous weekly breakout @ 4321, if that happens then traders should move into short- positions from Thursday onwards.
Previous Weekly report
SPI Monthly and Weekly cycles
The SPI moved upwards for the first 3-days and retested the previous Weekly breakout and then got sold off on Thursday using the August lows as resistance.
I was expecting higher highs around 4405 by Thursday's open, but that was mainly due to the S&P 500 failing to follow the same 3-day rally pattern.
The current price action was written 3-weeks ago, and described in my new book, and so far it's following the text book patterns...
And if it continues to do so, then the SPI will move down towards the September lows in the following month.
Next Week:- In the short-term if it's below 4029 the trend bias is down....
However, it won't surprise me to see the SPI inside the Weekly channels (above 4029), simply because the S&P 500 remains supported around it's August lows @ 1115 until September.
Read US Index report (S&P 500)
