SPI Daily 4th February 2010 recap

"With the failure to move beyond the higher timeframe 50% levels, I have the view that the SPI is trying to move down towards 4548 today.

I feel that the next 2-days are simply going to remain in sideways pattern until next week, which means 21-42 point moves.

The trend guide is going to be 4588.

Random support 4564"



SPI futures

SPI moved down in early trading, with the expectation that price was completing a R42 range down towards 4548…

Instead 4564 supported the market, and late buying pushed price back towards the highs:- & another sideways trading day of 21-42 point moves

Buying 4564 wasn’t optimised to the patterns & trends in the current market.

Currently the SPI remains in a sideways pattern below higher timeframe 50% levels, with the expectation price is heading down towards the February lows.

However, that will depend on the price action in US markets on Thursday whether the SPI opens higher (above), as US markets are currently trading above support levels.






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