Cheese Toast Friday, page-22

SPI200 Commentary

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SPI had a sideways days Thursday as it chopped around in a 30 point range for the day. SPI opened at 5750 and then fell down to 5725 which was the range for the day. Sycom saw the lows tested again but rose into the close around 5745. There was another missile launch from North Korea early this morning and that has caused equity futures to sell off. The drop this time was a lot less than the previous launch, so you can see the market is already starting to discount this threat. You'll need an actual strike to cause panic now. Metals continued their slide overnight along with the miners ADRs so that will pull the XJO lower. Also there were report about banks other than CBA and the money laundering they allowed. So this may help soften the blow for CBA but overall won't be good for the banks. So with all this negative lead we should see the XJO drift lower again today. I don't expect a huge sell off but chances are the XJO will test the 5700 level today. For todays trading I am looking to buy dips around 5705 and sell rallies around 5745