Proof Reading Wednesday, page-4

SPI200 Commentary

Follow or Fade!

It was RBA day yesterday and the SPI had one of those unexpected rallies similar to ones that occurred last year. SPI was trading near support around 1030 then had a sharp strong rally that went 50 points in about an hour. SPI fell slightly into the day close and was weaker overnight and closed near that 5730 level. That rally yesterday would've caught a few weak short off guard but with the way the US was weak overnight we should see the SPI remain range bound again. The SPI broke out of the smaller range (5700-5730) but still remains in the larger longer range (5650 to 5780). The 5730 level was the line in the sand yesterday so again I think if it breaks early then we'll test 5700 again. Should it remain supported above that level then we should consolidate just above it. For todays trading I will be buying dips around 5710 and sell rallies around 5750