SPI Futures Australian Stock Market 27th August 2011 Weekly report

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.

Previous Weekly Report

SPI Monthly and Weekly cycles

The Australian Market remains supported above 4137, as the S&P remains above the August lows @ 1115

Next Week:- the Australian market could move back down into the Weekly 50% level @ 4129, but my hunch the trend continues to move upwards.


Once the next 5-days are over, then the week after next will let us know whether the trend follows the September low pattern using the Monthly 50% level as the trend guide....

 Or continues upwards and back towards 4405, using the September 50% level as the trend guide.


My view is that is going to continue down towards the September lows, and if that happens then my bet is that Obama will announce QE3 somewhere around those September lows (double bottom) which will underpin (support) the trend for the rest of 2011