Creative Icecream Flavour Tuesday, page-16

SPI200 Commentary

Follow or Fade!

SPI had a whippy range bound session Monday as it had a few decent intraday moves but no overall longer term trend in place. SPI looked strong at times around the 5680 level in the morning only to be sold off into the close. SPI Sycom session recovered and is back near the top end of the range. It's 4th of July holiday in the USA tonight so expect the range bound conditions to continue today. The big moves in markets overnight was in the commodities sector with precious metals getting sold off hard while the agricultural space booming with Wheat limit up, Soybeans and Corn all up strong. BHP and RIO did well during the London session so expect them to help the XJO today. Also its RBA day, while the market isn't expecting any rate movements there is a tendency for the XJO to bounce unexpectedly on days like this. So since its likely to be more range bound action today the plan is to buy when the SPI looks terrible and sell when it looks great. For todays trading I am looking to buy dips around 5640 and sell rallies around 5685