SPI Futures Australian Stock Market 18th August 2011 recap

The 3-day up move is over and the SPI can't break the August lows.

Today is the first time i'll be focusing on Shorts:- Resistance 4289

Below 4263, first target is 4221, and as low as 4154-4122 by Friday

SPI Weekly and Daily range

Thursday ‘sell’ day aligned with the August lows and confirmed with a breakout of 4263, with first target reached @ 4221

My view was that a 3-day rally could move much higher, but it was from Thursday onwards that could see selling pressure in the markets, 3rd day up move and the SPI can’t crack the August lows, whilst the
S&P 500 can’t crack the 3rd quarterly level @ 1208.50.

Today's selling (Thursday) has resulted in a push downwards, aligned with August lows, and a reversal could see the SPI back into the weekly  levels (4154/4122) by Friday.

Any further selling in the market, as part of a potential move towards lower lows in September, will need to see the SPI trading below 4137 (next week), whilst using the 'new weekly levels' as a trend guide, as illustrated in the above chart.

Further downside will need to be on the back of US markets following a similar Thursday ‘sell’ pattern.







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