SPI  O63030 H63060 L62400 C62870
DM + DI 30 –DI 29 ADX 15 (falling) M/as 5/6304 15/63002 30/6319 P.S. Short 63905

This week was a week where MARKET ANALYST ON-LINE SOFTWARE Gann Squares and ASX 200 ½ Hourly charts brought a formidable combination for SPI traders.  The 2 pt. P&F chart on cash made great patterns with amazing geometry when used with Gann 144 square. The right side of the chart being the important one especially with the June expiry on Thursday, 21st.  Past history shows the commercials like a strong closeout for commissions earned during the quarter – expect a volatile two hours.  It is usually not a place to be caught short!  The banks were recently sold off and a rally could be supportive for a rise in the index.

The half hourly chart on the ASX 200 Index serves to illustrate the reality of SYCOM influence on SPI openings.  One strategy would have been to buy the opening low on 13/6 but selling the opening highs on 14-15/6  and covering on the subsequent corrections.

The decline from the recent all time high 6409 to low 6170 = 239 points whilst the June SPI covered a range of 255 points.  The  ½ Hourly chart pinpointed the bottom on 13/6 and where the subsequent 2 day rally retraced approximately 50% of the overall move down with initial rally to precisely the Fibonacci .382 retracement.  It is a good idea to work out the retracement levels of the big range and mark them on your chart.

This market reflects Gann’s influence and it is best viewed with a Gann 144 plastic the angles drawn in from the highs and lows tell the story with the amazing geometry. The featured chart was reproduced from a hand drawn one and provides a lot of useful information for the week ahead.  Retracement levels Fibonacci 61.8%= 6317, Gann 2/3rds 6329.5. A potential resistance line from 14/15th opening highs would come into play at  6332 10.30 am. on 17/6, with Support line lows of 6283 10.30 am and 6309 4.00 pm. SPI traders need to observe the importance of time cycles on intra day charts using the squares of 144 and 108---1/3 and 2/3 divisions in time and price.

It has been worth studying the action over the past week in relation to the Gann Angles drawn off both high and low which provided significant support and resistance.  The crossing above the 45 degree angle from high on 14/6 (A) and (B) at resistance on close at precisely the .382 retracement and again on 15/6 (C) with the day’s range high of 6298.5. In both cases these resistance angles brought in a futures correction.  The next angle (D) into the Fibonacci 78.6% retracement 6358 , Gann 2/3rds 6329.  Sycom closed on 15/6 at 6328 with high 6330, low 6287.  An interesting start to the week’s trading!  A marvelous tool from MARKET ANALYST –OBV (on balance volume)  which I have been using  to analyse stocks but it can also be valuable for intra day SPI trading – the published chart for last Friday provided some clear messages and confirmation signals on other indicators.  The high pre-empted a good sell off in futures.  Every day is a technical adventure.