ASX Morning call 17th July, page-2

SPI200 Commentary

Follow or Fade!

SPI was weak Monday, as it sold off from the open gap higher and continued to the close. Sycom saw more lows and a close near the lows. Banks are leading the XJO again as they were weak yesterday and dragged the SPI down. Banks are trading in a very choppy fashion day to day but it seems that they set a direction early and continue through the day. So following that pattern should help intraday. Overall the pullback in the XJO is part of the trend higher from the lows made in March. Should the XJO head lower and start making some lower lows then we may have seen the top but with retail sentiment still so short you cant rule out another short squeeze to the highs from here. So XJO found some support just above 6200 in the last pullback, so watch how price reacts at that level today for clues on overall direction. For todays trading I am looking to buy dips around 6160 and sell rallies around 6200