SPI Trading 3rd March 2008 part 2

Often when the market breaks out of the 5-day range low, the daily timeframe can swing around all day in 44-point ranges without making a extended down move during the day session.

A trading day below support is often confirmed with a 22-point rejection price pattern and the continuation down into the R44 low... Morning report



10:35

We have the break of the 5-day low @ 5437 confirmed with the R22 rejection-pattern outside the lows, with the expectation that there should be a continuation down.

Trading day outside the 5-day range @ 5437 has a random length, it can continue downwards into a 'trending day', or it can swing around into 44 points ranges all day

This morning's best trading set-up was a the R22 rejection.

Went long @ 5413 parital exit 5428 and 5432

Switched to shorts @ 5433 and added @ 5428

Partial exit 5423 5418 and holding with stops above 5438

looking to exit @ 5404

Note: Whilst price is trading below 5437 I'm not expecting any Upside moves.

The only thing that I can see would be later buying and an R44 'Hook' bar above 5437 which would attract short-covering and buyers looking for Gap closure......