SPI200 Commentary Follow or Fade! SPI had another stronger day...

SPI200 Commentary

Follow or Fade!

SPI had another stronger day as initial selling was bought up again. SPI initially tested the overnight lows but this was met with buying and sent the SPI back above 6000. Sycom saw a bit of weakness but closed near the highs again. As stated previously it looks like the SPI is showing the same type of price action that it did when it hit the 5900 level. There were times when dealing around that level that the SPI looked like breaking down or breaking up but remained range bound. So I think chances are the SPI will do that again around this 6000 level, as it threatens to break out and suck in some buyers or has some probes to the downside and suck in some shorts. From a stock level though, CBA had a breakout yesterday and if the banks continue this move higher then you have to expect the SPI to grind towards 6100 sooner rather than later. So keep an eye on the banks particularly CBA for clues but I think chances are SPI grinds higher today while still remaining rangy. For todays trading I am looking to buy dips around 5990 and sell rallies around 6020