SPI Daily 25th MAY 2010 recap

Yesterday saw a rise upwards and failure to continue beyond the Weekly 50% level and the MAY lows.

Trend guide 4345.

Below 4334-45 and downward bias is towards 4270.




SPI Futures:- Weekly and Daily range


Breakout of the MAY lows in the SPI @ 4457.

This week has seen a retest of the Weekly 50% level and whilst below
4356 the bias is to continue down.

Early rise upwards but below 4345 the bias was to follow the daily range down into 4270.

The Aussie market support levels in MAY @ 4457 failed as the S&P moved down
into last Friday’s lows, and whilst below the MAY lows price can often
continue down in the following month (June), unless the S&P 500 drags the Aussie market upwards in the short-term.

With the subsequent bounce off the Weekly lows in the S&P on Friday
I thought that US markets would have remained above 1070-74
until the start of June before the next potential leg down.

Because the S&P is now trading below 1070-74 (MAY low breakout
and below the Quarterly 50% level) there is the view that price is
rotating back towards the Yearly 50% level @ 969.

That could happen quickly or it could take a number of weeks to unwind towards 969.





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