SPI Monthly and Weekly cycles
There are two patterns at play during September using the Monthly 50% level as the trend guide....
#B) forms support around 4135/37, and rises up towards 4405 and then 4600 by the start of October
or
#c) August lows forms resistance, and the next leg down begins with the September 50% level rejection pattern.
My view is (#C) simply because all the patterns over the past 2 -months have played out accordingly...
and Thursday's fake breakout and reversal pattern was the first sign of that happening.
The 2nd sign of that happening will be the market trading below 4135/4137
September lows are seen as the target and robust support levels for the rest of 2011.
