SPI  06365 H 6369 L 6338 C 6359
DM +DI 23, -DI 19 ADX 16 Falling.  M/as 5/6309, 15/6330, 30/6294

Last week was a week of volatile trading where offshore influences played a big part - Shanghai 30/5 and Dow Jones 31/5 - with huge ranges and lots of trading opportunities for traders who are fast on their feet.  Market Analyst with a 5 minute time frame, 8 period Directional Movement and 5/15/30 harmonic moving averages provided great entry and exit signals.  Thursday 31st was a really spectacular trend on APCSpot which commenced offshore at 11 pm. on 30/5 Sydney opening with a cluster of the m/as resulting in a fast run to 6354.  A strong trend move with Market Analyst provided great profit taking signals from Parabolic Stop on price and the ADX crossing over the Parabolic Stop in the Directional Movement box. I discovered this by accident and the observation of fast trends where ADX rises to +70 and where the m/as are trending strongly.  The 5 day m/a also capturing the big trend.  This is generally not a profitable area for new longs.  The day had four possible trading opportunities using m/as and candlesticks.  When the market is trending strongly, traders can leave it to Market Analyst to signal the exit levels. Keeping P&F. charts an added advantage. Friday was again a good short sell on the opening – chart shows big red candlestick after 6367 high with price falling to 6340 – double bottom and – white open blue body c/s in a 20 minute time frame up to day’s range high of 6369.  The rest of the session was extremely volatile with a rally of up to 6363 into the 3 pm. time frame which brought in a correction with a final session low of 6340 – a bullish c/as coming in to take it up to 6360 with a close of 6359. P&F is excellent for opening and closing sessions on this market. Sycom trading on Friday night H 6367 L 6342 C 6361 – ready for Sydney Opening Monday morning. Contract high resistance 6407.

ASX 200 INDEX 1/6/07  06321 H6352 L6318 C6335
DM +DI22, -DI 14, ADX 30 Falling.  M/as 3/6296, 5/6291, 15/6310, 30/6276

A wild week with a 121 point range on the index – buffeted by Shanghai and Wall Street. It is well illustrated by the ½ hourly chart on ASX 200 Index – well worth keeping especially when using Gann squares and angles – the information will amaze you. The trend lines and angles are incredibly precise.  Worth noting is the Gann Angle off 22/23rd highs touched by the index after initial high with 50% correction in the first half hourly of trading.  The rest of the day was corrective.  Inspired by further gains on Wall Street, the index hit the upper resistance line from the 2/23rd highs and then range traded for the rest of the day.  Monday will be a test for possible further gains with a band of resistance 6384 ahead.  I draw in Gann Angles from the last significant low 6231 which are worth noting.  In theory once the fast angle breaks, a correction to angle below is a possibility.  Friday action late in session moved below the 2nd angle but on the 2 pt. P&F chart, the close was right on an uptrendline of lows after doing a lot of P&F work in the last hour where it would need to break about 6346 for bull signal. Support low 6312

Resistance line off high      10.30am  6349    4 pm.  6346
Gann Angle off 6231 low   10.30am  6310    4 pm   6338
45 Degree Angle   “            10.30am  6290    4 pm   6313

Gann Squares 144 and 108 work well on this chart . The 1/3 time divisions especially important.  2/3rds in time off 6226 low 25/5 comes in at 6370 1 pm Tuesday 5/6. XJO on Market Analyst with indicators compliment this chart.  Worth investigating the tic and 1 minute time frames when market is trending strongly.  SPI trading is difficult with Sycom influences – best traders use a strategy to avoid trading against a strong trend.