SPI thoughts. for week 16-9-07.
by, 16th-September-2007 at 03:31 PM (1867 Views)
The SPI is reaching the apex of a sizable triangle/consolidation phase. This triangle is similar in timeframe to the one in mid-july that broke south.
If it breaks through the A resistance line, it should go on to test the mid-july highs around 6450. Perhaps the aggression/speed of the last 2 bounces off the B support line indicate more positive sentiment than negative at the moment.
If it bounces off A and heads down again, then B and C might provide support. If it pushes through B and C then the following down trend might be quite significant.