ASX Morning call 31st July, page-2

SPI200 Commentary

Follow or Fade!

SPI was range bound Monday as it dipped early in the trading session but found buyers around the 6200 level. SPI then moved higher into the close and rallied to resistance around 6240 during Europe. US session saw selling and SPI finished where it started at 6225. It is the last day of July so watch out for some end of month games. It does feel like the US is topping, with the Nasdaq leading the way lower, so the SPI should be heading lower but as usual it likes to confuse and rally against logic. There is a bit of rotation going on in the US with growth stocks being sold and cyclicals being bought, so one could argue that will help the XJO. Either way it does look like the 6300 level on the cash will hold the market for now. So look for more range bound conditions and wait for your ranges to hit before fading. For todays trading I am looking to buy dips around 6210 and sell rallies around 6250