The SPI tumbled overnight on the back of large losses on Wall Street.

At today's opening, prices weakened further with a low of 5757 - that's 305 points lower than Tuesdays night session high.

Prices seemed to have stabilised for now. I'll be looking to the next consolidation to trade - and trying to determine if this fall corrects the uptrend - leading to a resumption of the uptrend, or if it's the start of a large change in trend.

That's me stopped out with a 52 point and -10 point profit/loss, so 42 points net (less spreads).

The SPI closed @6047 at the end of yesterdays day session and pushed higher overnight to a high of 6062 (spread betting prices), before softening.

Today's session has brought weaker prices with the SPI currently around 6009, with a low of 6003.

My 'line in the sand' is still 6,000 - so I narrowly missed being stopped out for a small profit. I think if prices break this level the trend will turn down, but I'd still wait for this to be confirmed and an appropriate opportunity if this does happen.

Prices moved sideways in Fridays night session, despite modest falls on Wall Street.

Today, after a dip in the first hour or so of trade, prices have come off their lows and consolidated again.

I guess I'm waiting for a spark of activity to break out of this range. Either above 6020-6030 or below 5990-5995 areas of resistance.

As per my open trades, I'm thinking it will be to the upside.

Prices remained strong over night, rallying further and then retracing a little toward the end of the session this morning.

As mentioned yesterday, I was looking to add to my position. With this overnight strength and a strong opening to another new high, I bought @6010 with a stop @5080.

I moved the stop on the first trade to 5080 as well, so the stops are the same and to lock in some of yesterdays profit.

We ended today's day session @5993, after briefly touching the 6,000 level for the first time.

After today's action putting the trend firmly back on track, in the upward direction, I'll be on the lookout for a small retracement and then another advance, in order to add to my position.

Looking at the price action over the last few days, on the hourly chart, it looks corrective - meaning that I think the uptrend should resume.

This morning prices broke up through a consolidation, see chart below.

Based on this new breakout, I went long @5948, with a stop @5915 - under two previous lows.

My stop at 5950 remind in tacked - only just - during the night session, with spread betting prices dipping to 5951.

The open today was another story, with the SPI dropping to around 5928 within the first hour.

So, I've been stopped out with a 128 and 85 point profits for my two trades.

I'll think about where the trend is going before I enter again.

Prices dropped in the first hour or so of trade and then spent the rest of the day struggling back higher.

We're up a few points in early trade in today's night session @5974, at the moment.

If Wall St comes in positive, hopefully, we will head to my 6,000 limit order.

I moved my stops up to 5950 during the night session, to secure another 50 points profit in both open trades. That locks in profits of 128 and 85 points (less spreads).

I've also set a limit at 6,000 to close both trades out at this level. If prices don't reach here, I'll probably choose to close them out sooner rather than later, at the moment. Of course, my stop may be hit first!

The SPI had recovered Fridays losses by mid-afternoon, and built on a rally that started during Friday's night session.

At 5978, we've had a pretty good run. I think, with the 6,000 level approaching fast, prices may take a pause. I may take profits around, or rather just under 6,000, and then wait for the next signal.

After an opening rally, prices fell away for the rest of the day. We're around 5916 at the moment, with a low of 5906.

I'd rather not get stopped out at the moment, since I believe the market will move higher next week.

If prices drop away further, I'll be stopped out with a profit.

The SPI did move higher yesterday, with an intra-day high of 5970, but prices came back to close @5957.

The night session drifted lower but picked up strongly in the last couple of hours to close @5960 (according to spread betting prices).

With the stops of both of my open trades @5900, I'll be looking to move them higher if and when we push higher, to lock in more profits.

Wall Street was slightly firmer overnight: S&P500 +1.51 and the DOW +23.15. With the US at new highs (all time high for the DOW, 6 year high for the S&P500) as well, I think we should push a bit higher before a more sizable correction.

Prices sold off into the close yesterday, reaching the lowest levels of the day - 5914 at one point, closing @5920.

Despite this, my stop @5900 was fairly safe, as there has been strong resistance above this level previously.

Wall Street rallied overnight, with the S&P500 reaching a new high. This boosted the SPI, with the night session hitting a new high for the contract @5950.

I'm expecting a push higher from here.

It was a choppy session today, with prices coming of their opening highs.

The daily trend is up and hopefully Wall Street will 'follow through' yesterdays advance and push us higher overnight.

Despite dipping into the resistance zone yesterday afternoon, indicated on the previous chart, the SPI pushed higher overnight as Wall Street bounced back.

We opened with a gap this morning at around 5944 and prices look strong, so I've moved my stops up to 5900, to lock in profits of 78 and 35 points (less spreads), for the two open trades.

With the SPI @5914, it looks like we're breaking through resistance. See how we go.

Another negative session on Wall Street is dragging us down so far this week.

We're still a few points under yesterdays day session close, @5892 at the moment.

Hopefully we can push higher and Wall Street will bounce to help us out of this current trading range.

The SPI took a hit at the open this morning, from Fridays day session close, due to Wall Street's weakness in Friday trade (the DOW was down 91 points at one point).

After consolidating the opening dip, prices are now firming and are back @5900 at the moment.

I'm expecting prices to push higher this week from here.

Well, we came off the highs of the open for most of the day and rallied into the close.

The night session has started off positively, currently @5906, and I'm expecting the SPI to push higher next week.

I've moved my stops to 5850 on both trades. If prices did hit this price, I'd profit on one trade and loose a bit on the other to equal out at breakeven for the trade.

Whilst it is good practice to lock in profits, I want to leave enough 'room for maneuver'. I see this trade having the possibility of lasting many days if not a few weeks. I'll see how it goes.

The night session started with a burst of enthusiasm yesterday, reaching a new intra-day high, only to tail off for most of the session.

Buyers came back for the open today, with another high of 5892 in the first few ticks of trade.

After things settle down, I think we will push higher today.

Both trades discussed previously are still active. I'll be moving stops up after we've cleared the 5855-5885 area of support/resistance.

More sideways action this afternoon.

I think this consolidation is near to its end, so hopefully we will see a push higher in the night session and tomorrow.

Prices consolidated during the night session and there was some volatility during the first half hour of trade with the SPI moving between 5883-5856.

Things have settled slightly now and prices are pushing higher, currently @5871.

Prices came back even more with an intra-day low @5854.

This action 'closed the gap' between yesterdays high and today's opening jump.

The SPI is now up around 5881 and I think, at the moment, we should see stronger prices for a few days.

The SPI consolidation during the night session and then spiked higher at today's open - probably due to good interest rate news.

Another consolidation zone formed so I moved my stop higher and also added to the position and bought @ 5865.

Prices then came back down a few point to a current intra-day low of 5858 and are now moving back higher.

So, two long trades open. 1st @5822 and 2nd @5865.

After a further rally and retracement, I bought @5822 with a stop @5799.

11:57

Now that prices have moved higher another, better looking, consolidation zone can be seen:

I'll wait for the first retracement to see where it stops before entering a trade. If the 5813-15 area provides strong support and prices move up again, it could be a good buying opportunity.

A small consolidation zone has formed over yesterdays day and night sessions:

Whilst it's not exactly the best pattern I've seen - 'better' patterns are usually larger in both time and price range - it should break today, but it would not be a high confidence trade.

14:33

Prices are moving down with lower high's and low's on the hourly chart.

Hopefully, it will form a more tradable pattern this time.

No real surprise that I was stopped out late in Friday's day session, at breakeven.

Despite a 'very' corrective looking rally during Friday's day/night sessions, there is no suitable consolidation from which to wait for a breakout.

Just got to wait for the next opportunity.

11:33

Prices are edging higher but it's not exactly inspiring.

I'm wondering if prices are going to reverse sharply, but with the stop at the entry point, I'll leave the trade alone to see if we gain some momentum to the upside.

10:18

The SPI is at 5805 now, with a high of 5813 so far today.

I've moved my stop to the entry point, so I'll either be stopped out without a loss or if things go well, ride the move higher.

02/02/2007

9:24

There was a dip into yesterdays close, but with a stop @5756, there was plenty of room to move.

Prices were firmer in the night session.

15:01

Prices are now around 5790, with a high of 5793, so are breaking through resistance.

01/02/2007

A bullish pattern developed, so I bought @ 5779.

Not quite the normal breakout pattern that I prefer, but a good opportunity as I think we should now see higher prices for a few days.

Always ready to take profits though.