Friday, 24 February 2012

Friday Plan

Morning All,

I am having problems putting my charts up so I will have to update later in the day.

A quick note. The Emini S&P500 sold off on the cash open and put a low in right at 1350 before reversing strongly and trending higher for the rest of the day. I talked about buying 1350 to 1355 support zone yesterday and this trade played out nicely: You just have to buy that first retest of a strong breakout level. I believe this market is now on course to retest the 1368/1370 high in coming days and would not be surprised if we get a bullish/climatic overthrow. 13 50 now becomes a key marker for the bears.

The AUD was a key lead for risk markets yesterday. There was an attempted breakdown early that triggered some sell stops,but then the currency immediately reversed and trended higher for the rest of the day. Once again, yesterdays ABC pattern here proved to be a great low risk support play: I believe this opens up a move right back up to the previous highs also.

In Australia, the 4250 SPI level (4265 cash) remains a key support level. We sold off sharply yesterday, making a spike low of 4246, but ultimately we held in and grinded higher for the rest of the day. Thus this remains a key marker.

My SPI range today: 4250 to 4305. Outlier levels 4289/90 and 4230.

MY SPI day trading plan:
We are indicated at 4276 early and thus right at the top end of the range. I really am not sure how long this uptrend lasts for and I would need to see a climatic reversal out of key resistance levels before I could call it a done deal. The key levels are 4289/90 and then 4300 on the upside. I will look to short fade these levels only if i see a reversal candle on the 5min timeframes. Look for breakout trades above 4300 if we don't sell early. Any dips down to 4250 should be bought once more.