Loomis Tuesday, page-12

SPI200 Commentary

Follow or Fade!

SPI had a very weak day Monday as it sold off early, recovered back to the open then sold off again even harder. The selling continued into the close and closed near the lows. Since UK and US were closed the overnight session went sideways around the lows. Last week at options expiry the banks put in long tails but all those lows were taken out yesterday which is a very bearish sign. So as usual keep an eye on their price action for a lead on the overall market. With overseas markets seemingly in decent shape it will be interesting to see if the XJO continues lower on its own path or it will be supported by dip buyers. It does seem at the moment that the easiest trades on the XJO are sell rallies so be patient and wait for failure at resistance for some good entries. For todays trading I am looking to buy dips around 5680 and sell rallies around 5730