Furball Friday, page-19

SPI200 Commentary

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Sideways day on the SPI with a range of 66. SPI opened at 5203 and ranged between 5185 and 5215 till the BOJ release. Once the BOJ disappointed with no more QE SPI then fell from 5220 to 5174. SPI recovered into afternoon trading between 5180 and 5210 then closed at 5201. Europe saw the SPI break down and head to 5168 but recovered during US hours rallying to 5228, then fell into the close at 5193.

Yesterdays action in the SPI was dominated by options expiry in the equity markets. It was fairly obvious that lots of stocks were being pinned into the close which is why the SPI remained range bound. Overnight the metals and energy markets did well which will help part of our markets. Next week we have the Aussie banks reporting so it will be interesting to see how they fare. Last month after index expiry the XJO was sold off and there was another good sell off after some end of quarter window washing. I have a feeling that we just had the same kind of propping up into equity options expiry yesterday and we will see the XJO roll over the next few days. This is just a gut feel so don't just short blindly, wait for the SPI to fail at resistance or what ever set ups you trade. For today I will be looking to sell rallies around 5210 and buying dips around 5160