WOW … does time fly fast. I was intending to get this report out weekly and all of a sudden 4 weeks have gone past! Now I have a whole bunch of people on my back to get it out EVERY week … so I’d better!!!
Since my last report the All Ordinaries index continued to rise making new all time highs. On October 13 and 14, it stopped at the resistance level of 3734; 125% price extension of the previous Primary Cycle is at 3728. October 14 is also a major turning date in the market that coincides with a solar eclipse (check this historically … it might surprise you!). 3725 is also 100% of the previous 46-Month cycle, hence strong resistance at this level.
The market is now entering week 22 of its 19-week “Primary Cycle”. This often indicates a sharp decline to end the cycle. It is also in the orb period for the “20.5-Month Cycle”. The longer cycle is always the dominant one and can contract or expand the shorter cycle - meaning that this primary cycle could be expanded beyond the 16-22 week orb.
My bias from the market is a decline from this level on the confirmation of a 1-3 day counter trend. Minor reversal dates coming up are Thursday 21 October and Wednesday 27 October. If 3734 is the top of this 20.5-Month cycle, expect support at 3602, 3467, 3334, 3201 and 3066. The decline has 70% probability of falling to between 3326 and 3075. If further advances are made (new highs) these support level will be recalculated.
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