ASX Morning call 30th July, page-3

SPI200 Commentary

Follow or Fade!

SPI had some big moves Friday but ended up near where it started for the day. SPI was bid Friday as the pattern continued of a strong finish to the week. Sycom saw new highs printed for the Sep SPI during Europe session but US GDP caused a big reversal in the SNP and SPI fell down into the close. The move smelled of a big short squeeze so it will be interesting to see if that was a top formed Friday or if its a retracement of the the uptrend. While the SPI make new highs, it does seem the XJO will have a hard time breaking the 6300 level. There hasn't been much movement in the FX market this morning so it could be another wait and see Monday morning trading session for the SPI. So as usual keep an eye on the Big 4 for clues on the overall market. For todays trading I am looking to buy dips around 6200 and sell rallies around 6240