SPI Daily 16th January 2009 recap

"This week's view was for price to move down from the Weekly 50% level and into the Weekly lows @ 3481.

That completed yesterday, and these Weekly lows are often valid support zones, which could see prices rise upwards next week.

The move down was confirmed with Thursday's break of the 5-day lows @ 3560.

If we use 'text' book patterns then 3560 on Friday is viewed as resistance and we would look for a move down on Friday, which often favours a lower Daily close

Basically If the SPI opens around 3560 I would look to short it down into 3515, and then define the rest of the trading day by 3515

3515 is viewed as today's trend guide:- random support"


SPI Weekly and 5-day pattern


Higher daily open and probability of moving down into 3515 played out, but it was a hard slog to get there.

Friday ended up a small inside day range day, with the potential to move down into next week's weekly lows, depending on price action in the US on Friday.

Weekly lows are valid support @ 3481 this week, but next week those Weekly lows shift lower.

Weekly report out tomorrow


Posted by