SPI Futures Australian Stock Market 27th April 2013

SPI Monthly & Weekly cycles

The Australian Stock Market continues to trade above the 2013 Yearly highs, and remains above April Support levels @ 4904,There is a bias to continue higher, as financial Stocks (READ the Stock Report) show the same bullish signs, however the collapse on commodity prices & Resource stocks keeps a lid on the overall market rising.

Those Commodity prices are now around 2013 primary BUY zones, which can see a short-term rise in the last week of April and into the start of MAY (Previous Report)

Trend bias is to continue higher next week, helped by the Weekly breakout and extension up into next week's highs.

if there's any weakness next week, it's based on retesting last week's breakout @ 5057 (Support)

If it does continue higher the next 5-days, and then into new highs the week after next, then it's time to look to profit taking, and then look for the same BUY zone in the 3rd Quarter.

NOTE: THIS IS THE LAST REPORT FOR A NUMBER OF WEEKS, AS I HEAD O/S.

SPI Futures Australian Stock Market 20th April 2013

SPI Monthly & Weekly cycles

The Australian Stock Market continues to trade above the 2013 Yearly highs, and remains above April Support levels @ 4904

There is a bias to continue higher, as financial Stocks (READ the Stock Report) show the same bullish signs, however the collapse on commodity prices & Resource stocks keeps a lid on the overall market rising.

Those Commodity prices are now around 2013 primary BUY zones, which can see a short-term rise in the last week of April and into the start of MAY, but then stall.

Therefore, the Australian market favours a rise, but when we look at most market reversal (DOWN) they happen in MAY, when the same Support levels break.

SPI Futures Australian Stock Market 13th April 2013

SPI Primary Cycles

The Australian market remains above the 2013 Yearly highs @ 4853

whilst it's above this level, there's an expectation that the trend will continue with the break & extend pattern into 2014 Yearly highs :- 9 months away

SPI Monthly & Weekly cycles

Monthly cycles showing weakness, as per Weekly Report. There's also a breakout of the Weekly lows @ 4906, which often suggests that the trend will extend downward into this week's lows.

The only pattern that might see a rise, is the Friday low support @ 4884.

This pattern often leads with a 2-day rise to start the week off. (8th April 2013)

The Australian Stock market began the week with a 2-day rise, helped by price being above the Yearly highs. This put the trend back above Monthly cycle support, and now there's an expectation that the trend will continue upwards:- 2-month trend towards the MAY highs.

If that's the case, then next week's 50% level @ 4970 is the trend guide & Support.

The Australian Stock Market 6th April 2013

As illustrated in previous Weekly reports, the Monthly support levels (RED) often provide a robust entry level during current Quarterly cycle & up into new highs in forward Quarterly highs:- 3-6 month trend:- Current Support resides around 4904

A break of the same Monthly Support level will put pressure on the trend to drop further, until the same pattern appears into the forward Quarterly cycle providing the next long-term entry level:- that long term entry level is @ 4673"

SPI Primary & Monthly cycles

Even though the Market remains above the Yearly highs in 2013, price has broken 2nd Quarterly Support, & now there's an expectation that price is following the trend bias of #B, down towards 4673.

As mentioned previously, Support needs to be validated with a 5-day high breakout, and often that happens with price never spending too much time below those Support levels in each Quarterly timeframe (RED)

Support held on Thursday, but it then failed the very next day, closing below.

Therefore the trend bias is to follow #B