Australian Stock Market SPI futures 24th August 2015

SPI Primary & Weekly Cycles

As noted in the Previous Report, I still wanted to see some downside in the Australian market, as it hadn't followed the 'TEXT-BOOK' support patterns.

We can now see the Market sell-off began with the breakout of the Weekly lows @ 5474, and likely to move down into this week's lows @4969, and ideal zone to be looking for a short-term swing pattern.

We are also testing the 3rd Quarter lows.

We also have to acknowledge the SPI is now officially in a bear trend, and bear markets often follow trends lower into 2016. (2-pattern extension into the following yearly lows)

Therefore any short-term support  (READ S&P 500 report) must treat the 2015 50% as resistance for the rest of the year

Australian Stock Market SPI Futures 2nd August 2015 Monthly Report

SPI Primary & Weekly Cycles

The SPI didn't follow a move down into the July lows, so it hasn't followed a 'Text-Book pattern' that often captures the next move upwards. Instead price has remained within the confines of the Weekly cycles.

TEXT BOOK Pattern:- 2 month wave pattern (July lows) or monthly support pattern.

As commodity prices drop the Aussie market is now following US markets (READ US S&P500 Report)

US markets are showing more upside, therefore the robust support levels in the Aussie market resides around 5547 in August.

I would still like to see those TEXT book patterns play out, and that might happen some weeks from now, as the market moves into a multi-week consolidation pattern (3rd Quarter Consolidation into the 4th Quarter)