spi update

The wave structure indicates significant downside risk from here.

Sup: 4899,4857*,4813-15,4781,4755

Res: 4956,4990,5019*,5047*,5067

The break of the 4951 recent low provides a degree of confirmation to the assessment that next downwave of the unfolding sequence from the May high is likely to be underway.

As discussed, wave relationships project wave equality at 4683 where the current downwave equals the May decline as a probable objective, with the risk of more extensive weakness to the 1.618 relationship at 4401.

To negate the risk of further near term decline the market would need to recover through resistance at 5047.

Whilst not favoured, this occurrence would suggest a longer period of consolidation towards higher levels ahead of the next downwave. A break of support at 4857 would greatly diminish the potential for a near term recovery