SPI TRADING 16/8/07 O5700 H5750 L5535 C5700
8 Period DM  +12 -51 ADX 35 M/as  3/5913 5/5874 15/5972 30/6172 Falling

ASX 200 O5788 H5788 L5483 C 5711
11 Period DM +10 -57 ADX 44 M/as 3/5821 15/5991 30/6179 Falling

Traders will remember this day – newspaper headlines tomorrow will tell the story of today’s panic.  It was a day when SPI TRADING WAS HALTED during which time the index fell to low of day (last trade 5618) and came back on making the day’s low 5535 before turning up in line with the physical market. The “crash prevention team” were obviously at work and succeeded in turning the market.  The MARKET ANALYST 5 minute chart on XJO is worth studying.  During the bull market, I have seen the trading halted before resuming the uptrend when it was at a dangerous pivotal point.

The ratio and P&F targets in 15th August commentary (1) 5920 (in the market) (2) 5744, (3) 5575.88  were satisfied in todays action. An Interesting close was 5711 – the 3 box P&F target 5700. Something of technical interest was 5700 at the mid-point of range from September 06 low to July 07 high – Gann! A daily close chart using 144 1 mm. Gann Square is well worth keeping.

On the topside now 5920 – significant resistance.  Individual stocks showed the support which came in on the lows – long tails.  Huge breadth of the market of falls over rises, particularly the mining sector which has just about eroded most of the gains from the more speculative stocks.  Uranium leaders have halved in many cases.  It is a time to view stock price patterns as coming off tops. Monthly and weekly charts are especially important.

The Dow Jones has broken an important support and looks like heading lower. Hong Kong, Nikkei Dow had big falls to-day – watch Shanghai – it could be next to have a change of trend.

What we are witnessing is a change sentiment with fear coming into the market. Few stocks can swim against the tide.  Expect continuing volatility with big ranges. P&F charts are great for traders and a half hourly chart a must.  Today was a day for much paper hanging – the charts are huge and almost unmanageable on the desktop.  They do however convey the real magnitude of the price falls.