Morning Update SPI Futures 16/10/2015.

SPI Futures have found a support around 38% Fib. retracement (penultimate candle highlighted with Red) of the prior move taken from the most recent low ( highlighted with Red again).This level is also the 50 period SMA support, which has reinforced it’s strength. For anyone who may not be familiar with SPI Futures, I use it as a proxy to ASX 200 (XJO) for the simple reason that it is a 24/5 affair with more detail than XJO.

It may be reasonable to assume that the zone marked as “next resistance zone” may be tested over the next number of trading days. Currently SPI has reclaimed  38% of the lost territory of the prior major leg down, taken from April high. The next resistance zone is the 50% throwback zone from the same April high.Most important test would be the 62% Fib. retracement level ( Golden Mean) which clusters with 200 day SMA around 5500 level. But we will revisit that if and when we are successful at the 50% level.

So far, this short term bullish behaviour on this daily chart of SPI is considered as a counter-cyclical move which must also be noted.

Lets see how XJO and XAO reacts to this overnight bullish development, will we see the tentative bullish price objective of 5800 from our P&F chart for XAO met in time ( months )?



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