SPI futures 3rd August 2011 recap

Support @ 4316/19

Resistance 4352

below 4316, then it's moving down into the August lows

SPI Weekly (24 hour range) and Daily range


As noted in the Weekly report, there was an expectation that the SPI was moving down towards this week's lows, as part of the break and extend pattern.

Today:- Early 21 point rise from support, but it then failed to continue towards the resistance level @ 4352 (Wednesday’s 5-day lows)

Once below the support, the bias was to follow the trend towards the August lows.

The SPI and the S&P are now trading around their August lows. This is the first time in 2011 that both markets are now in sync with the monthly BUY cycles.

However, as noted earlier this week, the Monthly rejection pattern during this current 5-day cycle has a bias to continue lower.

Therefore, after this week's 5-day cycle there is a possibility that next week swings back up towards the monthly 50% level, validated using lesser timeframes.

Any further weakness in the S&P and the trend bias is to continue towards 1209, whilst the SPI moves down into 4137/57





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