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SPI200 Commentary

Follow or Fade!

SPI had a good gap higher thanks for options expiry then sold off for the rest of the session. It looks as though the 5900 level is going to be resistance here, so chances are XJO will drift lower and test 5800 over the coming week. Banks have been dragging the SPI lower and with some of the stories starting to come out from the royal commission, it will take a while till they come back into vogue. Resources on the other hand are on fire and lots of individual stocks broke out yesterday. So with the mixed forces the choppy SPI action will continue. A failed rally towards 5900 on the XJO would be my preferred short entry for the day, but in general looking for places to get short. For todays trading I am looking to buy dips around 5820 and sell rallies around 5870