friday, page-63

For a while I have mentioning SPI/XJO at 3500 approx on a close basis as important maybe.

Others have had different numbers and probably based on extremes rather than a close basis.

My reasoning is that old top or bottoms are support and resistance in the future.

3500 was the 2002 bull market top.

We broke below that in Nov but only for about 3 days and then regained it.

It then acted as support until recently when we broke below again but once again we are above it.

Obviously it can only cross so many times before you can chuck it out the window as meaningful.

However it held as support even though it opened way below on Friday.

Friday was one of those "ignore the first big day down in the US" days but we now have a second decent fall in the US.

Do we play catch down as we probably should be 100+ pts lower on Fib movements or hang in there till Tuesday and RBA.

SYCO was only down 63 and maybe we can manage to keep XJO to a 40 pt fall and hold 3500.

That would say there still is some importance to 3500 but any more crosses and it is meaningless IMO.