SPI Trading 23rd October 2008 recap

"This week we had a 2-day rotation back into the Weekly 50% level.

A rejection pattern down, and on Thursday we are trading around the 3-day lows once again.
SUPPORT 3980 RESISTANCE 4085


1. A reversal into the 3-day lows can continue higher (3980), which means a 2-day UP move into Friday.

This is because price has retested the 3-day lows and has verified last Week's support.

Even though 4085 is a random resistance zone today, it would not surprise me to see even further buying into the close after 3pm back into the 5-day 50% level (4165)"

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SPI DAILY AND THE 5-DAY PATTERN

3980 held and short covering into the close.

Price didn't get as high as 4085 but could easily open that high tomorrow or around 4165.

Depending on US markets on Thursday:- below 3980 and it's heading down towards the Weekly lows.

Keep in mind that price is trading below October lows and the bias is to continue down.

At this stage price still continues to rotate within the 5-day pattern until the end of October, which is ideal for swing trading.


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