fridee stuff, page-8

Well I guess you couldn't call last night a turnaround night.

SPX got close to 0.618 pullback and SPI 0.5 and probably need to hold if it is just a pullback.

Daily RSI on SPI and XAO got to just below 80 and so is just a bounce so far. A good move above 80 is common for a "kick off".

Below is the SPI prem/disc in the lower middle yellow indicator.

Ignore the last 2 entries as they are dummies for today and next Monday which allow me a "look forward" with some other indicators.

Yesterday was up strongly.

My theory is that single outliers like yesterday can usually be treated as a contrarian signal with prety goods odds.

In the bigger picture if the mid term behaviour of the indicator is modestly in line with the price trend it is OK but extremes are a sign of "wrong" thinking.

If we had a sustained period of modest discount even or better still a shorter period of large discounts then it would make me more bullish.

Some will find this chart large but I have attempted to put a fair amount of data on the chart for some historical reference. I have also taken the chart from another computer and other attempts to reduce it has meant a loss of clarity.