Balloons Thursday, page-8

SPI200 Commentary

Follow or Fade!

SPI had a weak day Wednesday as it sold off from the open and kept going till it hit lows at the close. Sycom saw SPI recover part of the fall but it is still in the lower part of the days range. XJO continues to drag along the lows despite the rest of the world rallying to new highs. The sell off was pretty broad yesterday but as usual the banks led the way lower. CBA was the only bank that was positive and word from my desk is that it was a large order in the weeklies that kept it from falling. Retail sentiment is very long at the moment and this is mainly due to them being accustomed to playing the ranges. The XJO is at 5650 and this has been support for the last 4 months so most are expecting a bounce. I think it will bounce but wait for a quick run to yesterdays lows and a shake out of some weak longs for a better entry. For todays trading I am looking to buy dips around 5620 and sell rallies around 5660