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SPI TRADING 14/8/07 O 6014 H 6025 L 5908 C 5963
8 Period DM +22 –DI 32 ADX 34, M/as 5/6023 15/6051 30/6213 Falling ASX 200 O 60116 H 60222 L 59387 C 59648
11 Period DM +14 –DI 48 ADX 40, M/as 5/6033 25/6065 30/6218 Falling
Trading on the 24 Hour Range Sycom has produced some incredible charts on MARKET ANALYST – 5 Minute Time Frame, 8 period DM and 5/15/30 m/as. This market is fraught with danger for the unwary. Of special interest was the Pattern on the ASX 200 ½ Hourly Chart for 13/8 gave a potential measurement to 6116 which was precisely where overnight Sycom took it – it also happened to be the Fibonacci 78.6% retracement shown on 13/8 Chart Commentary. Sellers up there scored a big run down to today’s low 5908 in early trading with blue candlestick for profit taking. The rest of the day with wild swings and a “test of the lows” 5910 before reversing smartly and closing near the top of Range – typical futures action. The move has continued to 5990 on Sycom which was supported by P&F. (8.45 pm 14/8 5989). A premium of 25 points over the Index close.
The published chart is absolutely a stunning example of the 5/15/30 moving averages. The market is in a holding pattern on the cash – will it break below the support is the next consideration. The stocks do not suggest an immediate turnaround with total market advance/decline falling.
These are some potential ratio targets from the ASX 200 Index which can be extremely accurate - (1) 5920.30 (in the market) (2) 5744.14 (3) 5575.88 P&F targets 5950, 5650, 5500, 5350 from 20 pt. 1 box chart, Target from 3 box 5700. These can be useful guidelines.
Wall Street is hanging in there like a proverbial thread. Last night’s fall was marginal. Traders would do well to watch the rises and falls on our Industrial and Mining Sectors. The Index is “massaged” and does not reflect the true technical’s incorporating the breadth of the market.
From a Gann Square of 144 mm on a daily close chart on the ASX 200 Index From the September 2006 low – 1/3 retracement is 5940, 50% = 5700. It pays to check monthly charts on stocks and indices.
Good trading! The right side of the chart is the important one. One might well ask: what happened to the bull market?
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