SPI Daily 2nd June 2009 recap

"Normally when there is a break of the 5-day high, price comes back and retests the break 3873 over 1-2 days.

This could happen, and should be part of our view based on Monday's break and extend pattern, even though I think Markets are going higher in June.

Resistance 3944 + 3965"

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SPI Weekly & 5-day pattern

Yesterday's breakout of Monday's highs had an expectation of a higher move into Tuesday's highs.

Even though I have a view of higher prices in June my expectation was for the SPI to move down towards yesterday's breakout using Tuesday's levels @ 3944 and 3965.

There were some selling around those levels, but only the lesser ranges of 21-23 points, which was enough to bag some profits, but not the complete 44 point reversal.

Now it's up to US markets to decide whether the SPI moves up towards 4042, or reverses back down towards 3873




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