The Equity Charts That Matter

Is the Spoo aboutto repeat September trick? 

I don't think much needs tobe said with this chart. it is just an observation for now but Friday left anincredibly bearish candle after running up over the previous few weeks. This,coupled with the failure to get above the 61.8% of the years down move make mevery cautious going into this week. Today's close is likely to be important andbeing month end it could be fun and games all round. Watch this space.

Stoxx poor lowunlikely to be left behind 

Thursday saw the Eurostoxxleave an incredibly poor low before ramping. These lows are very rarely leftbehind and I expect this area to be revisted this week at some point. Whilethis doesn't give a trade opportunity right away, it is something to be awareof if you are long now. Any break of Friday's lows and I would expect this areato be the next target.

Watch for FTSEmonth end flows 

FTSE is generally theequity market which has the most flow during the month end moves (typically inthe final 10 minutes of the cash hours and then the following five minutes ofsettlement). It has been outperforming in this recent leg higher so it could bethat we see a squeeze higher into the close I would argue that for this weeklongs are preferred until we break and hold below the 38.2% of the most recentmove. Targets above are at 6102, 6138 and the big one at 6182. That beingsaid, dont go into the final minutes blindly long. You'll see plenty of flow onther DOM (depth of market, or ladder) and this should give clues for fast moneymoves.