SPI Trading 7th March 2008 part 5

SPI 13:50

SPI still trading in a consolidating pattern of 14 point ranges between the two 5-day lows, and within the next 40 minutes volume should start to pick up around 14:36.

I still favour a down move into the R44 lows @ 5255, but whether the market moves higher or rallies higher this afternoon is another matter:- (R44 Hook)......

Looking at the SPI market over 24 hours, we can see the break of the Quarterly lows and Weekly lows today.

This was confirmed with the break of the 5-day lows in the Day session.....

The expectation is that US markets could make lower lows on Friday, and a break of the March .618 @ 5249, and price could end up down as far as the Weekly 100% level overnight 5051, which isn't going to go well for my bank stocks.

So the important level for any short-covering this afternoon is going be the R44 lows and the previous 5-day lows @ 5259, otherwise it's a Friday that will close much lower.....

Note: the 24 hour charts are going to have different ranges compared to the day session because of the larger overnight moves based on sycom.

What was a Weekly low support on the 24 hour markets, was a resistance breakout (100 point difference ) in the day session.