Do a Grouch a Favour Tuesday, page-9

SPI200 Commentary

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With the US closed overnight the SPI had a quieter session with a range of 88 points. The SPI opened at 4782 and had a quick pop to 4804 but this was quickly sold off and sent the SPI all the way down to 4732 before lunch. The SPI managed a recovery as it bounced back to 4798 then closed at 4784. The Euro session saw the SPI consolidate the rally and ranged between 4800 and 4820 for the night. The US was closed and the SPI did little and finished at 4812.

As mentioned yesterday we should see the SPI rally as it looks like some other markets like commods, rates and FX have completed capitulation patterns. The market action yesterday did show that while the SPI did rise, the sell offs will still be quite strong and violent. These moves are there to shake out weak hands so expect more to come in this move higher. Today I expect this grind higher to continue and for it to be a large range trading day. So I will be looking to buy dips around the 4790 area and sell rallies around 4850

5m SPI Chart from Monday