spi update 4 the poor bulls

The wave structure indicates significant downside risk from here.

Sup: 5015,5002,4982,4951*,4911

Res: 5054,5070*,5086*,5106

This market remains vulnerable to significant weakness as the next downwave of the unfolding sequence from the May high is likely to be underway.

As discussed, the medium term picture suggests that this downwave should be of equal (targeting 4683) or greater (perhaps 1.618 targeting 4401) magnitude to the May decline.

A break of the recent 4951 low would increase the likelihood that this sort of move is in progress.

To negate the risk of significant weakness in the near term the market would need to recover through resistance at 5086. A move through this level would suggest a longer period of consolidation towards higher levels ahead of the next downwave.