Wine and Cheese Tuesday, page-7

SPI200 Commentary

Follow or Fade!

SPI had another volatile intraday session but overall still stuck in ranges. SPI sold off early and printed a new low at 5593 but this was bought up and closed at 5620. Sycom SPI saw the SPI trade higher and closed near the highs of the range at 5638 and pretty much unchanged for the day. It looks like that move lower on the SPI was a clear stop run and with the way it has reversed expect the SPI to head to the top end of the range again over the next two sessions. The only clue that the XJO was not going to break out of the recent ranges yesterday was that the banks were not selling off very hard. They may not have looked great yesterday but there was enough buying to keep the XJO above that 5680ish support area. I have noticed that the top end of the range seems to keep getting lower with each successive bounce from this area so keep risk small if buying dips. For todays trading I am looking to buy dips around 5625 and sell rallies around 5665